What is the metaverse, and why are corporations interested in it?

What Is the Metaverse?

The metaverse has emerged as one of the most talked-about technological concepts in recent years. Meta (formerly Facebook) gave this field remarkable momentum. At the end of the last decade, the company announced a $10 billion investment in building a metaverse, followed by a rebranding to Meta—a move that highlighted its strategic commitment to this direction.

Within the technology community, interpretations of "metaverse" vary widely. Some experts define it as a virtual world where physical reality and digital space blend seamlessly. Others see the metaverse as a global online universe that connects a range of virtual platforms and services.

The most precise definition frames the metaverse as an evolution of the XR (Extended Reality) concept—a comprehensive integration of virtual and real worlds. It forms an ecosystem where augmented reality (AR) and virtual reality (VR) technologies intersect, creating a unified environment for interaction. In the metaverse, users can freely engage with digital data across real, virtual, and augmented realities, switching among them as needed.

The fundamental goal of the metaverse is to create a seamless merger of digital and physical worlds within a single technology platform. Advances in cognitive digital platforms, next-generation AR/VR devices, sophisticated controllers, and the deployment of 5G networks are making the metaverse concept more realistic and achievable than ever before.

Notably, the idea of metaverses has deep roots in science fiction. Writers have long envisioned similar virtual worlds; for instance, Sergey Lukyanenko's novel "Labyrinth of Reflections," published at the close of the last century, offers a detailed portrayal of virtual reality.

Over the past two decades, technology companies have launched a variety of projects to realize the metaverse concept. Early pioneers include Second Life (launched in the early 2000s), the social network IMVU, and the gaming platform Roblox, which debuted in the mid-2000s. More recent and advanced projects such as VRChat and AltspaceVR have showcased new possibilities for virtual interaction.

Why Are Corporations Pursuing the Metaverse?

Leading tech corporations view the metaverse as a strategic chance to shape the next computing paradigm shift. Experts predict that smartphones—dominant for over fifteen years—will either evolve into new device formats or be displaced by fundamentally different gadgets, such as AR glasses or neural interfaces.

For Meta, the ambition to become a metaverse leader makes clear business sense. The company aims to link "metaverse" directly to its brand, much like a search engine became synonymous with a major tech company. This brand positioning could deliver a powerful competitive advantage in the emerging market.

Corporations also have deeper economic motivations. Virtual environments provide an unparalleled landscape for gathering and analyzing user data. Since most large tech companies depend mainly on monetizing user data for targeted advertising, the metaverse opens unprecedented opportunities. In virtual worlds, companies can track not only digital activity but also behavioral patterns, emotional responses, and physiological metrics—unlocking new avenues for personalizing ads and services.

Additionally, the metaverse introduces a new economic ecosystem where corporations can monetize virtual goods, services, real estate, and experiences. These represent new revenue streams beyond traditional advertising.

Challenges Facing the Metaverse

Despite the metaverse’s appeal, cybersecurity and privacy experts warn of significant risks. Underlying technologies create extraordinary possibilities for mass surveillance and personal data collection—at a scale far beyond current digital platforms.

AR devices designed for metaverse access are almost always online and packed with sensors: high-res cameras, microphones, inertial measurement units, light sensors, and more. This hardware can collect highly detailed user information, including biometrics. Today’s technology can even identify people by unique features like heartbeat or walking style.

AR glasses—worn directly in front of users’ eyes—raise special concerns. These devices monitor gaze direction, track attention, measure focus, and record emotional reactions in real time. Eye-tracking cameras transmit vast biometric data to corporate servers, building detailed profiles of users’ psychological and behavioral traits.

Sociological studies reveal public skepticism about full immersion in virtual spaces. Surveys show only a small minority—about 12%—believe the metaverse could replace real life in the near future. Most respondents see virtual reality as a supplement to, not a substitute for, the physical world.

Another substantial problem is that initiatives to build global virtual spaces are led by large corporations, not open communities or decentralized organizations. This brings strict corporate rules, pervasive advertising, potentially lax privacy protections, and possible content censorship driven by corporate ideology and commercial interests.

Critics note that the main motivation for building metaverses is corporate pursuit of new monetization sources and profit growth. Companies seek to place users in a controlled cyberspace that unites AR and VR within a single corporate-owned ecosystem. Revenue plans include not just advertising and data, but also sales of specialized access devices and transaction fees in the virtual economy.

Meta-Scale Competition

Meta now faces intense competition in the emerging metaverse market from other tech giants. Apple stands out as a major rival, meticulously preparing to enter the space with its signature approach of building a robust ecosystem before launching new products.

Apple has already laid the foundation for its AR ecosystem and proven core technologies in its smartphones and tablets. The company integrated advanced LiDAR sensors into mobile devices, enabling precise spatial navigation and 3D environmental scanning—critical for quality AR experiences.

Apple also invests heavily in powerful proprietary mobile processors for complex real-time rendering of virtual objects. At the same time, it actively acquires promising AR/VR startups, gaining access to cutting-edge technologies and top talent.

Analysts observe that Apple is preparing for the metaverse as aggressively as Meta—just more discreetly, in keeping with its culture of secrecy. Historically, Apple has repeatedly taken leadership in new tech sectors, often without being first to market, by delivering superior, user-friendly products that become industry standards.

Beyond Meta and Apple, other major players have joined the metaverse race: Microsoft with its Mesh platform, gaming companies Epic Games and Unity, and numerous startups developing specialized solutions for virtual worlds. This competition could fragment the metaverse market, with different corporations controlling their own virtual ecosystems.

Virtual Reality: Already a Reality

It’s important to recognize that virtual reality and metaverse components are not just futuristic concepts—they’re technologies already shaping everyday life. Digital technologies have long been embedded in modern lifestyles, and the pandemic accelerated digitization across industries.

Many professionals and office workers already use virtual spaces. More and more are "moving" to virtual offices—custom digital environments accessed via VR headsets like Oculus Rift, HTC Vive, or newer devices. In these environments, colleagues meet as avatars, hold meetings, collaborate on projects, and even take informal breaks.

The benefits of virtual workspaces become obvious in practice. In the physical world, users are limited to one or two fixed-size monitors, restricting multitasking. In virtual reality, these limitations disappear: users can deploy any number of virtual screens, arrange them optimally in 3D space, and work with all the apps and documents they need simultaneously.

Virtual workspace users report that once they experience VR, returning to traditional work methods feels inconvenient and confining. The flexibility of VR workspaces far surpasses anything achievable in the physical world, where digital interaction typically happens on a small laptop or desktop screen.

Yet there remains a perceptual barrier: people who haven’t used VR often struggle to grasp the practical advantages of virtual workspaces. These benefits become clear only through hands-on experience. That’s why metaverse companies are focused on lowering adoption barriers and creating more accessible, user-friendly VR devices.

Conclusion

Expert views on the nature and impact of the metaverse are sharply divided, highlighting its complexity and multidimensional character. Some specialists see the metaverse as a next-generation virtual space poised to fundamentally reshape how people interact with digital information and each other—an evolution of the internet from two-dimensional web pages to immersive 3D worlds.

Others take a more skeptical stance, regarding the metaverse as less a technological breakthrough and more a marketing trend for large corporations to attract investment and boost revenue. Critics argue that many promised metaverse capabilities are already available or may not be in demand.

Experts pay particular attention to risks and threats lurking in the metaverse’s digital realm. Cybersecurity specialists warn of unprecedented opportunities for surveillance, biometric data collection, and behavioral manipulation. They worry that repeated immersion in carefully engineered virtual environments could make the physical world seem dull or limiting, fostering dependence on virtual spaces.

Psychologists express concern about the effects of extended metaverse use on mental health, social skills, and real-life interpersonal interactions. Adolescents and young adults—whose personalities are still forming—are seen as especially vulnerable.

Nonetheless, many observers acknowledge the metaverse’s vast potential for creativity, education, entertainment, and professional growth. Virtual worlds can deliver experiences and opportunities unattainable in the physical realm—from travels through history to scientific experiments, virtual concerts by global stars, and safe simulated training in advanced skills.

The metaverse’s future will likely depend on balancing technological progress, corporate interests, user needs, and government regulations. The central question remains: can metaverse creators build virtual worlds that serve user interests, not just corporate profits?

FAQ

What is the precise definition of the metaverse? How is it different from virtual reality and augmented reality?

The metaverse is an integrated virtual environment combining VR and AR technologies, where users socialize and interact in a persistent ecosystem. Unlike virtual reality—which focuses on immersive experience—the metaverse emphasizes social connections and shared experiences. Augmented reality enhances the physical world with digital elements, while the metaverse creates an independent digital space with its own economy and assets.

Why are leading tech companies (like Meta, Microsoft, Tencent, and others) investing aggressively in the metaverse?

Major tech companies invest in the metaverse for its immense economic potential. By 2030, experts project the metaverse economy could reach trillions of dollars, unlocking new markets and growth opportunities in the evolving digital landscape.

What commercial applications and profit opportunities does the metaverse offer corporations?

The metaverse opens profit channels in virtual retail, digital education, entertainment, and marketing. Key revenue avenues include tech development, content creation, digital avatars, virtual asset trading, and B2B solutions. Companies such as Alibaba, Baidu, and Tencent are advancing these areas, with rapid market growth supported by government initiatives.

What are the essential technologies for building the metaverse? (For example: blockchain, VR/AR, AI, etc.)

The metaverse requires eight core technologies: hardware (VR/AR), network infrastructure, computational power, virtual platforms, blockchain for payments, standards, content, and user engagement. VR/AR hardware remains the primary development bottleneck.

How can companies build their brands and market in the metaverse?

Companies build brands in the metaverse through immersive experiences, interactive communities, and personalized strategies. Virtual storefronts, NFT assets, and influencer partnerships drive brand awareness and attract audiences.

What stage is metaverse development at? How far is it from true maturity?

The metaverse is still in its early phase. Key technologies have yet to mature, and full realization will require years. Significant progress is expected by 2030, driven by advances in VR, AR, and blockchain.

What risks and challenges do investors face in metaverse projects?

Metaverse investments face technological uncertainty, virtual asset security risks, and immature regulatory frameworks. These factors may impact long-term project viability.

How will the metaverse change work, education, and social interaction?

The metaverse will revolutionize work with remote collaboration in virtual offices, transform education through immersive interactive courses, and redefine social interaction via deep virtual meetings and communities.