The prediction game has long guided the crypto world. This time, JPMorgan analysts focused on the Metaverse market, particularly that of video games. According to studies, the Metaverse game market could explode in China. And this, despite the current regulations which present certain adoption difficulties. With the development of digitalization of companies, this growth could at best exceed 100 billion dollars. The analyst team explained the reasons for this potential explosion in its report.
China: Metaverse games market predictions are optimistic
For experts at JPMorgan, Metaverse games will explode in China. Despite the loose structuring of this type of market and the limitations imposed by cryptocurrency legislation in the country, many believe that there are real opportunities for growth. According to the famous investment bank, the boom could exceed 100 billion dollars.
JPMorgan listed the main companies in China that could benefit from the explosion of this sector of the Metaverse. This includes Tencent, a conglomerate offering Internet games and artificial intelligence services. But there is also NetEase, a gaming giant in China. According to the report, NetEase has a virtual meeting room system called Yaotai. Tencent, meanwhile, already uses a video conferencing application, the “Tencent Meeting”. Incidentally, this company also has extensive experience in managing China’s largest social network Weixin/QQ mobile. This allows him to benefit from the sale of virtual items on these platforms. Also on the list are companies such as Bilibili, Agora and China Mobile.
The digital market is gradually integrating companies
JPMorgan adds that with the metaverse, time spent online will likely double from the current average of 6.6 hours in China. Estimates indicate that the Metaverse games market will grow from $44 billion to $131 billion, almost triple its value, with the many traditional game companies trying to break into this new market.
Companies will contribute greatly to the growth of the market in China. JPMorgan estimates that the total market in China for business services and software in the metaverse will be $27 billion. The digitization of offline consumption of goods and services will be a $4 trillion market in the country. This concerns companies ready to change their business model to go digital.
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