According to a KPMG report, 70% of companies will invest less than 5% of their technology budget in the metaverse in 2023, and 27% will not invest in the metaverse at all.
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KPMG research shows that the Metaverse has great potential to boost business profits, but there is currently no evidence that companies are investing heavily in it to succeed.
“for [tech, media and telecom] So it helps us know where and how much to invest to avoid being caught off guard by Metaverse pioneers, and also to help minimize the potential for funding redundant projects.” said Mark Gibson, TMT Leader, KPMG. USA, in reports.
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The Metaverse broadly refers to the concept of a digital world where people live, work, play and interact with each other as avatars through virtual reality platforms.
of KPMG research Sixty percent of TMT executives indicated they believe the metaverse can drive revenue and profits and reduce operational costs as transactions move from physical to virtual. Surveys show that they also believe they can improve customer satisfaction through interactive experiences.
However, according to KPMG, a similar percentage acknowledged that despite the potential of the Metaverse, further refinement and development was needed.
“Most of the TMT executives who participated in our survey feel that it will take several years for the Metaverse to become a thriving commercial ecosystem,” says the report.
Most of the global companies surveyed (70%) are investing less than 5% of their technology budgets in the metaverse in 2023, and 27% are not allocating funds to the metaverse.
The report considers responses from 767 technology, media and telecom executives from companies with annual revenues greater than $250 million. Companies came from 13 different countries and her 5 continents.
not yet seen success
According to a KPMG report, many in the technology, media and telecommunications industries want to see evidence of growing use of the Metaverse before making big investments.
According to 40% of surveyed respondents, there is a lack of success stories demonstrating a return on investment in the metaverse.
Surveyed TMT executives remain skeptical about the viability of the Metaverse, with 27% calling it an “impossible pipe dream” and 20% calling it “a fad that never lives up to the hype.” said.
Nearly 50% of respondents said their companies were “waiting and waiting” or assessing long-term business value before making large investments, the report said. I’m here.
In fact, meta executives previously admitted “Many products for the metaverse could be fully realized within the next 10 to 15 years.”
in the meantime, Disney reportedly Cut the metaverse division As part of the layoffs announced last week. The company never clearly outlined its Metaverse plans.
Former Disney CEO Bob Chapek said, “Our work to date will bring the physical and digital worlds closer together, enabling borderless storytelling in our very own Disney metaverse. Suffice it to say that it is nothing more than a prologue to the times.” As stated in the 2021 earnings call.
not ready
Many of KPMG’s survey respondents say their companies are underprepared for the metaverse.
According to KPMG, “The biggest barriers to investing in and adopting the Metaverse are the lack of technology to support the experience, high development costs, and lack of appropriate employee skills.”
Nearly half of respondents said they lacked the right technology to support the metaverse, and 50% said the high cost of developing the metaverse meant that companies had not invested enough in their strategy. said to prevent the adoption of
Fewer than half, 49%, said their company lacked the employee skills to run the metaverse.
The KPMG report noted that “there are potentially significant benefits in terms of ROI for results such as improved employee retention, which is a key strategic goal for many companies, and other similar enterprise applications. There is,” he said.
