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$68.7 Billion Acquisition of Activision Blizzard, What Has Microsoft Built for the Metaverse?

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The Metaverse combines two longstanding ideas: virtual reality and the digital second life.

Original Title:《What’s All the Hype About the Metaverse?》
Original Author: Brian X. Chen, The New York Times
Translation: gm, BlockBeats


Microsoft cited the Metaverse as the reason for its $68.7 billion acquisition of Activision Blizzard, so let's break down the real meaning behind it.


The term "Metaverse" is everywhere.


This past Tuesday, Microsoft cited the Metaverse as the reason for its $68.7 billion acquisition of the game developer Activision Blizzard, stating that this deal would serve as a cornerstone for the Metaverse. Last year, Facebook founder Mark Zuckerberg also placed a bet on the Metaverse, rebranding his company under the name "Meta." In addition, other internet tech giants like Google have been dedicated to Metaverse-related technology research for years, and Apple is also developing its own Metaverse-related devices.


But what is the real meaning of the Metaverse, and does it really exist? Here are some things you need to know.


What Is the Metaverse?


The Metaverse combines two long-standing ideas: Virtual Reality and Digital Second Life.




Attendees at VR World NYC in November, image sourced from The New York Times by Jeenah Moon.


For decades, technologists have dreamed of creating an era where a virtual life is as important as our physical reality. In theory, people would spend a significant amount of time in virtual space interacting with friends and colleagues, while also spending money there on digital outfits or items.


Mark Zuckerberg, as a technologist, also described the Metaverse as a virtual reality platform that allows people to live a second life. By wearing a headset, individuals can immerse themselves in a 3D environment, carry motion-sensing controllers, and use a microphone to interact and communicate with virtual objects.


And venture capitalist Matthew Ball has also written extensively about the metaverse, believing it represents the fourth wave of computing after mainframe, personal, and mobile computing.


Furthermore, Ball suggests the metaverse is moving towards what people call "ambient computing," one of Silicon Valley's tech buzzwords, referring to technology that allows people to interact with computers without realizing they are using a computer. It's about existing in the computer rather than accessing the computer. It is always on, rather than always accessing an online world.


"So you're talking about interacting with others through your avatar in a digital environment?" "Put simply, yes."


Has the Metaverse Already Existed in Games?


To some extent, the metaverse already exists in games, but it is still in its early stages.


Some social elements of virtual worlds can already be found in video games; for example, in Fortnite, an online shooter game played on computers, consoles, and mobile devices. Fortnite players spend hundreds of hours on average using their personal avatars to engage with and battle against other player avatars. Players can also earn virtual currency to unlock outfits and other items to customize their avatars.


Moreover, the precursor to the metaverse can be seen in "Second Life," an online social platform developed by Linden Lab two decades ago. People create their digital personas to socialize with others. In this virtual space, users can enrich their virtual lives through shopping and property construction.


On the other hand, VR and other virtual reality products have seen rapid development in video games. In 2016, Sony released the $400 PlayStation VR, a VR headset that connects to the PlayStation 4 console for virtual reality gaming. This month, Sony announced that the PlayStation 5 is also set to release a second-generation headset, with the release date yet to be revealed.


However, these are just stepping stones towards a complete metaverse, still gradually evolving. Nevertheless, tech experts suggest that with technological advancements such as faster internet connectivity, more powerful VR headsets, and the growing number of gamers, we are increasingly likely to live in an animated, lifelike 3D simulation.


“It’s only in the past few years that the many parts of the metaverse have come together to create the thriving metaverse we see today,” Ball added.


What Have Activision Blizzard and Microsoft Built for the Metaverse?


To be honest, Activision Blizzard has not yet deeply engaged with the metaverse.


Activision Blizzard is known for creating online games with metaverse elements, and its players have spent a significant amount of time building communities in the games. In its 2004 released MMORPG, World of Warcraft, players collaborated online to complete quests, collect weapons and armor, and enhance their digital avatars.


However, the company has not formally delved into virtual reality. It mainly develops games for personal computers and consoles and has not yet released any virtual reality games.


On the other hand, Microsoft has already started its work in the metaverse field.


Over the past few years, the software giant has developed HoloLens, a $3500 headset that displays digital holograms, focusing on enterprise and government applications. The device also has ties to augmented reality (AR), with some technologists believing that AR is part of the future virtual world.


Additionally, Microsoft is the developer of Xbox. Xbox is the second most popular gaming console after Sony's PlayStation, but unlike PlayStation, Xbox has not yet ventured into the realm of virtual reality gaming.


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