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Goldman Sachs Says Main Metaverse Race Is between Apple and Meta Platforms

UTC by Tolu Ajiboye · 3 min read
Goldman Sachs Says Main Metaverse Race Is between Apple and Meta Platforms
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According to Goldman Sachs, Apple and Meta are leading metaverse development efforts notwithstanding the problem with VR utility.

Goldman Sachs has concluded that the “main race” for the metaverse is between Apple Inc (NASDAQ: AAPL) and Meta Platforms Inc (NASDAQ: FB). In a recently published research report, the banking and financial services giant said that while Meta intends to gather as many users as possible, Apple aims to stretch the metaverse into its ecosystem.

The Goldman Sachs report discussed the metaverse, a combination of the internet with augmented reality (AR) and virtual reality (VR). However, the report favored VR more than AR because virtual reality already has existing and usable products. There is also a lot of innovation and development regarding the use of virtual reality. For AR, the report suggests that widespread adoption might take much longer because the augmented reality could remain largely in use by expensive industrial applications.

Although Goldman Sachs is optimistic about VR and all that it offers, the research report notes that there still is a gap regarding user adoption. According to the bank, VR has “failed to resonate with a broad base of users.”

Regardless, there is a good chance that adoption will pick up, especially as efforts at the metaverse increase. The report states that virtual reality platforms will continue to evolve as the year runs out and 2023 begins. Goldman Sachs however warns that the rate of sales and adoption would largely depend on whether users can enjoy sufficient utility from use. For instance, VR could form a strong foundation for essential life activities such as remote work. Adequate VR development focusing on utility will contribute immensely to sales and widespread adoption.

According to the research report, Apple will launch a VR product sometime in the first few months of 2023. Meta Platforms has a closer launch date slated for fall.

Goldman Sachs Says Metaverse Could Impact Crypto

Earlier in the year, strategists at Goldman Sachs shared their opinion about crypto and the metaverse. The strategists offered a slightly gloomy forecast on crypto, specifying that mainstream adoption would very likely not boost prices. However, they believe that certain assets could benefit immensely from increased metaverse adoption.

Generally, assets that contribute to or have significant utility in the metaverse could considerably spike. The price increase is almost certain as aspects of the metaverse become more popular. Digital assets like Ether and other cryptos built on the Ethereum blockchain may win big as more people join the metaverse. However, the strategists warned that while the metaverse would help these assets, there might be stronger factors to consider. The note said:

“…these assets will not be immune to macroeconomic forces, including central bank monetary tightening.”

Although many people use cryptocurrencies to hedge against inflation, traditional markets still have some influence on the crypto market. Macroeconomic forces could cause people to buy or sell more as directed by the proper financial market.

Business News, Editor's Choice, News, Technology News, Virtual Reality & Augmented Reality News
Tolu Ajiboye
Author Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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