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Rise of Metaverse Hardware

Introduction

Since the metaverse arrived, it has been backed as the future of consumer technology. Reportedly, many big tech companies have and continue to invest in metaverse hardware devices. With time, both consumer adoption and technology viability have increased. In the past few years, the rise of the Web3 gaming community has opened many opportunities for players. From in-game assets to decentralised economies, players can now truly own their digital experiences. These developments have transformed the gaming industry, creating a dynamic space where innovation and engagement converge. 

Collaboration with Samsung

According to a report from a South Korean outlet, called The Elec, Microsoft plans to order hundreds of thousands of OLED panels from Samsung for a mixed-reality headset, expected to be mass-produced by 2026. This device will focus on spatial computing rather than virtual reality (VR), distinguishing it from traditional VR headsets. While it is not specifically designed for the metaverse, any display device, including monitors, can connect to metaverse applications, providing an enhanced level of immersion. This partnership signifies that five of the ten most valuable companies, by market capitalisation, namely Apple, Google, Meta, Microsoft, and Nvidia, are working on metaverse-oriented technologies.

The Expanding Metaverse Hardware Market

The concept of the metaverse is more than just one place its a network of interconnected digital realms, each unlocking opportunities for exploration, creativity, and immersive experiences. Users can engage with metaverse applications through different modes, ranging from large TVs to small VR headset displays. Despite perceptions fueled by marketing hype and confusion, the market, for both VR and metaverse hardware, is understood to be expanding. According to official reports, Apple is creating a successor to its Vision Pro, which has already been adopted by over half of the Fortune 500 companies. Moreover, Google is collaborating with Magic Leap to develop a new mixed-reality headset, despite past challenges, and Meta, having rebranded from Facebook to emphasise its focus on the metaverse, continues to invest billions into its metaverse initiatives. Meanwhile, Nvidia benefits from this growth, as its graphics processing units (GPUs) are essential for powering the graphics and AI that bring these digital environments to life.

Microsofts Strategic Shift

If The Elecs report is accurate, Microsofts initiative would bring the total number of leading companies, developing new metaverse hardware, to five. This marks a significant shift for Microsoft which, previously, scaled back its mixed-reality efforts, including the HoloLens and Windows Mixed Reality initiatives. The new headset is expected to cater to entertainment, gaming, and video content consumption, potentially integrating with Microsofts existing platforms such as Windows and Xbox.

Future Prospects

The anticipated headset will utilise micro-OLED panels for high-resolution displays, along with expectations of adopting an Android-based operating system, allowing cloud streaming of Windows applications. This could create a unique blend of traditional computing and mixed-reality experiences. As competition intensifies in the mixed-reality market, the success of Microsofts headset will depend on its ability to stand out among existing products. Although the release is still years away, the partnership with Samsung positions Microsoft to, potentially, regain its influence in the mixed-reality domain.

Conclusion

The development of Microsofts new mixed-reality headset in partnership with Samsung reflects a broader trend among major tech companies to invest in metaverse technologies. As these companies continue to innovate and compete, the landscape of spatial computing and mixed reality is poised for significant transformation in the coming years. According to a McKinsey report, the metaverse could generate up to $5 trillion in value by 2030. Meanwhile, International Data Corporation (IDC) anticipates that global costs surrounding augmented and virtual reality could clock $72.8 billion by 2024. This shift promises to redefine how we interact with digital content, making immersive experiences more accessible and seamless than ever before. 

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