Despite China’s strict regulations at the moment, JPMorgan analysts predict metaverse games will rise in the country.
JPMorgan analysts expect boom in China’s metaverse gaming market
Companies like Tencent, Netease and Bilibili are the first choices of JPMorgan analysts for the $100 billion target. Currently, many companies are following the metaverse and new trends closely. While the market is vaguely defined, some say there are real opportunities for growth. Despite the current restrictions imposed by China’s crypto laws, JPMorgan analysts predict a significant boom in this industry.
JPMorgan analysts selected the best industries to lead this industry in China. These include Netease, another major gaming company in the country, and Tencent, a conglomerate that provides artificial intelligence and online gaming services. JPMorgan also mentioned Agora and China Mobile. Recommendations are based on standards for the growth of these businesses in terms of social media and gaming. According to the report published on September 7 regarding this:
The growth of mobile internet and artificial intelligence over the past five to ten years shows that a company’s competitive advantage in one area of the technology ecosystem is often more important than where it operates in determining long-term value creation for shareholders.
It is estimated that the Metaverse game market will increase from $ 44 billion to $ 131 billion. It is predicted that it will almost triple and many traditional game companies are already trying to get into it.
Digitizing businesses and tasks
These projections are largely based on the assumption that the metaverse will change how people conduct themselves and their businesses in the future. According to the financial institution, the average time spent online per person is estimated to double from its current value of 6.6 hours.
On the other hand, the expansion of the Chinese market apparently includes a significant amount of businesses and services. Digitizing physical activity will add even more, creating a $4 trillion market for businesses looking to go digital. The market for these Metaverse-related services will be $27 billion.
Barriers to overcome by the metaverse market
But it remains unclear how practical all efforts will be from a business standpoint. Without naming the companies as stock purchases, JPMorgan analysts announced a number of other ongoing metaverse projects in China, such as Baidu’s virtual world of XiRang and virtual reality development by Baidu-backed iQiyi, NetEase, and Bilibili.
Analysts said that virtual reality devices are currently too heavy to be used for long periods of time. They also added that cloud computing capabilities and metaverse content are limited. According to JP Morgan analysts:
We think it may take decades before the ‘perfect form’ of the Metaverse is achieved. While we believe it is enormous for the Metaverse, we believe there are several technological hurdles to overcome.
cryptocoin.comAs you follow, JPMorgan said last week that all but some altcoins will disappear.
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