Charting a Path

to the Metaverse
UNDERSTAND THE METAVERSE AND HOW IT
MAY IMPACT YOUR BUSINESS
Understanding the metaverse And what will we do in the Why consumers participate in the metaverse
metaverse? (% of respondents, n=577)3
David Baszucki, Roblox, believes that Curious Aspirational Enthusiast
What is the metaverse? “We think of the metaverse as a human
co-experience category that supports
The metaverse is the next phase in the evolution of the

Exploration
people coming together to socialize, to 41%
world wide web: While the 1990’s saw public adoption
learn, to play, to work, to experience I want to explore
of the Internet, the 2020’s stand at the beginning of the 46%
entertainment and amazing brands.” new worlds
Web 3.0 and the metaverse. The vision of this new era will
feature interactions with fewer technological barriers and Sundar Pichai of Microsoft believes
49%
gatekeepers, and will foster democratization of content Web 3.0 Era “People want more conversational
creation and value sharing. Internet Era experiences. They may speak to search.
Being able to adapt and evolve search is

Monetization
While no one ‘owns’ the Internet today, a handful of mega- 30%
Mark Zuckerberg, Meta, believes that “…the metaverse the biggest opportunity.” I want an
firms control access and get most of the value from it’s [is] as an embodied internet, where instead of just viewing
use. In contrast, in the metaverse, individuals will be able Jensen Huang of Nvidia, speaking to how additional source 28%
content — you are in it…”
to interact not just as consumers of content being served- the metaverse will work, sees it “Running of income
up to them but as participants in the value creation and Satya Nardella, Microsoft, thinks it “will bridge the digital simulations in the metaverse could save 42%
economics. The metaverse is, or provides, a futuristic and physical worlds. Going forward, every business process companies billions of dollars in the
internet experience where people interact via digital avatars will be collaborative, powered by data and AI.” real world."
11%

Creator / Identity Dynamic

to play, work, transact and entertain. How will the metaverse work? I would like to
Tim Cook, Apple, said “We’ve always reinvent myself in 25%
The metaverse is still evolving but it is already a reality that TMT organizations must contend with1 said that AR is a core technology. I think this new world
Consumer Engagement is Brands are developing Investment has increased it’s profound what you can do with it and 38%
increasing dramatically… Web 3.0 strategies… 4,600% YoY… the enhancement to people’s lives … but
Roblox monthly active users humanity has to be at the center of it.”
Investments in blockchain gaming 19%
(Millions) (USD millions) “AR will drive all things like chat, social
+216% networking, photos, videos, data, I want to build
22%
202M Gaming companies are +4,606% modeling, motion capture, and visual something new
191M
advancing their vision for $4,000M programming. Every form of computing 37%
will be combined together and unified in
113M
building a metaverse a single platform” said Tim Sweeney,
Epic Games received a Epic Games. 19%

(More of an interest from Enthusiasts / early adopters)

64M 70M
$2 billion investment from Consumer engagement, brand I want to meet
Sony and KIRKBI presence & investment new people 22%

Community / Social Interactions

(owners of The LEGO Group)
Dec-17 Sep-18 Dec-19 Dec-20 Apr-21
as of April 2022 As shown to the left, consumer 34%
Fortnite registered users engagement, brand presence and
(Millions) investment are increasing dramatically.
From the point of view of adoption, the 17%
+1,650%
350M most relevant questions to ask are not I want to be at
IF the metaverse will take-off, but WHEN the forefront of 12%
300M
Major companies are consumer and brands will engage and technology
250M investing in digital real HOW MUCH investment will be made?2 40%

estate to participate in In first quarter 2022, FTI Consulting

the metaverse conducted survey research with 7%
577 respondents to understand the
My friends engage
125M
Brands such as different reasons consumers participate in the metaverse
12%
Adidas, Samsung and Gucci $85M in the metaverse. The results of that and I don't want
20M have invested in survey are shown to the right. to miss out
28%
the Sandbox 2020 2021
2017 2018 2019 2020 2021

2 FTI Consulting, Inc. TELECOM, MEDIA & TECHNOLOGY – CHARTING A PATH TO THE METAVERSE TELECOM, MEDIA & TECHNOLOGY – CHARTING A PATH TO THE METAVERSE FTI Consulting, Inc. 3
Two types of metaverse experiences Emerging digital consumer paradigms
Let’s look at two examples of virtual world experiences offered by a Roblox Corporation, an New consumer use cases and paradigms are some of the fundamental shifts that are taking
online game platform and game creation system, where users can interact with one another: place as a result of the metaverse:
Virtual Retail Stores and Concerts

Virtual Retail Stores Concerts

Meaning of personal Evolving nature
identity is changing of interactions,
as people spend more becoming more
time in virtual worlds. Virtual Identity Digital persistent and
Money spent on in game perpetual. Connection
cosmetics show users
& Presence Participation to others across
value virtual appearance. multiple devices.

Creator-
Digital Metaverse Consumer
Ownership Convergence
Virtual Retail Stores Concerts
Users Spend in-game currency on Gucci avatar Users attend live events such as the 2 day virtual
merchandise, with a virtual bag selling for more than concert hosted by Lil Nas X that garnered 33 million Blurring of creation
Changing economics
its real-world counterpart. With more to do than just total views. Merch sales from the concert neared 8 of acquisition and value and consumption
gaming, users socialize, show off avatar items, and figures. creation with digital patterns. Users
creating experiences
attend events. Users can create their own experiences to share with objects. NFTs and Virtual Tribes Behavioural as part of the
similar technology allow
Though still in its infancy, virtual retail is evolving into friends. Roblox has developed a message service which
consumers to own and
and Societies Twinning experience itself.
a new kind of social platform, with daily average users can be sent to a concert goer’s mobile device enabling transact digital goods.
(DAUs) averaging 2.5+ hours per day. constant contact between users.4

Nature of social Crossover emulation

relationships, between physical
norms and group and digital
behaviour changing behaviour. Concerts,
and adapting to events, hangouts
virtual spaces. going digital.

4 FTI Consulting, Inc. TELECOM, MEDIA & TECHNOLOGY – CHARTING A PATH TO THE METAVERSE TELECOM, MEDIA & TECHNOLOGY – CHARTING A PATH TO THE METAVERSE FTI Consulting
Consulting,Inc.
Inc. 5
Charting the metaverse:
Various dimensions on which to participate
In our conversations with clients, we have found it useful
iGaming
to deconstruct the metaverse in its component layers Video Live Sporting Virtual
and Sports
Games Concerts Events Tourism
Betting
as a first step in understanding where to
play. The layers of the metaverse begin
Virtual Fitness Immersive Real Estate Location Based
with a consumer centric view Retail Stores Classes Education Entertainment
of experience, then the (LBE)
device the consumer
will use. Next, the
n ce
universe and the erie
Ex p Console Connected AR / VR Physical XR
Mobile PC Devices Facilities
content are chosen, Device

which are created

and maintained wth
a set of tools, resting ic e Open, “blockchain
on foundational D e v Centralized
Universes centralized in
servers fully controlled
by the developers or Decentralized
powered” universes
with decentralized data
administrators and execution
infrastrucutre.

rs e
i v e IP used for film, Individuals and Interactive content

Un
Content that is self-contained
television, sports and Enablers / companies that Non-Universe
Licensed IP other multimedia create, distribute and and only facilitates a
Creators Games
entertainment promote content singular experience

en t
o n t
C Economy Discovery
Creation
Tools
Visualization /
Digital Twins

Payments, Search
Crypto Wallets Engines, Social, UGC, NFTs, Game Engines,
& Access, Ad Tech & Avatars & Dev Platforms,

l s Marketplaces, NFT/ Marketing, Game Supply

To o
Identity
Blockchain Communication Chain
developer Apps
services

e
tur
Cloud
Decentralized Artificial

ruc
Connectivity Scalability
Infra and Hosting intelligence

as t
n f r Reactive

I Blockchain
Platforms
5G,
Broadband,
CDN, Mobile
Public /
Private /
Hybrid
machines,
limited
memory, theory
Edge of mind, self-
awareness

6 FTI Consulting, Inc. TELECOM, MEDIA & TECHNOLOGY – CHARTING A PATH TO THE METAVERSE TELECOM, MEDIA & TECHNOLOGY – CHARTING A PATH TO THE METAVERSE FTI Consulting, Inc. 7
Charting the metaverse:
Major corporations are already engaged
Looking at the same dimensions, note the major
international players already engaged.

Video Virtual iGaming Fitness Live Immersive Sporting Real Virtual Location
Games Retail and Classes Concerts Education Events Estate Tourism Based
Stores Sports Enter -
Betting tainment
(LBE)
n ce
erie
Ex p
Mobile Console PC Connected AR / VR Device Physical XR
— Apple iPhone — xBox — Alienware Devices — Oculus Facilities
— Android — Nintendo — Corsair — Apple Watch — Magic Leap — The Void
— Google Pixel — Playstation — Sky Tech — Amazon Alexa — Microsoft — Other World
— HP — Samsung Hololens — VR World
— PlayStation VR

ce
— Vive

e v i
D — Fortnite
Centralized
— Zwift — Animal — Decentraland
Decentralized
— Upland — The Sandbox
— Minecraft — GreenPark Crossing — My Neighbor — Axie Infinity — Somnium
— Crayta — Roblox — Second Life Alice — Illuvium Space
— Playable — Tencent — Snapchat — OVT — Blankos Block

er se Worlds — Facebook — Sorare Party

n i v
U — Pokemon
Licensed IP
— Watchmen
Content Enablers/Creators
— Mattel — Moonbug
Non-Universe Games
— Need for Speed — Candy Crush
— Lego — StarWars — CR7 — Hasbro — Super Smash — Angry Birds
— Marvel — DC — NBC Universal — Disney Bros Ultimate
— NFL — Faze Clan — X Games — Clash of Clans

en t — ESPN

o n t
C Economy
— Coinbase — Reality
Discovery
— Google
Creation Tools
— Funko
Visualization/Digital Twins
— Unity
— PayPal Gaming — YouTube — RTFKT — Nvidia Omniverse
— Metamask Group — Teamspeak — AVATAR SDK — Unreal Engine
— OpenSea — Elixir — Code3 — Overwolf
— Fortmatic —R — Twitch — Liquid Media

s
— Digitalax

o o l
T Decentralized Infra
— Sulinii
Connectivity
— Verizon
Cloud Scalability & Hosting
— RP1
Artificial Intelligence
— OpenAI

e
— Enjin — Equinix — Polystream — Pandorabots

t u r — Forte — China Telecom — Aws — Soul Machines

uc
— Tron — Helium — Playfab

tr
— Polkadot — Akamai — Mawari

as
— TMobile

n f r
I Note: Many universes have proprietary IP and do not always need to rely on 3rd party providers

8 FTI Consulting, Inc. TELECOM, MEDIA & TECHNOLOGY – CHARTING A PATH TO THE METAVERSE TELECOM, MEDIA & TECHNOLOGY – CHARTING A PATH TO THE METAVERSE FTI Consulting, Inc. 9
Charting the metaverse:
Meet our Leaders
Assessing if you fit-in and how
FTI Consulting can support you by assessing your metaverse readiness through the
exploration of near-term options and long-term strategies to identify paths to success.
FRANCESCO DI IANNI
Metaverse & e-Games Lead
Tel: +1 310 746 7588
Francesco.Diianni@fticonsulting.com

Develop near-term and Evaluate your

long-term initiatives to company’s metaverse PHIL SCHUMAN
capture opportunities value chain footprint Head of the Media & Entertainment Practice
with a detailed execution and review possible
in?

Tel: +1 310 651 9060

roadmap and support metaverse scenarios
oW

from FTI’s network of Phil.Schuman@fticonsulting.com

metaverse partners
wt

Wh
Ho

ere

SUMEET GUPTA
The
to

Head of the Enterprise Technology Transformation Practice

Metaverse
P

Tel: +1 214.397.1642
lay

Sumeet.Gupta@fticonsulting.com
?

What to Do?
DANIEL PUNT

Identify and prioritize Tel: +1 310.651.9066

opportunities based on trends Daniel.Punt@fticonsulting.com
and scenarios leveraging a
scorecard approach

10 FTI Consulting, Inc. TELECOM, MEDIA & TECHNOLOGY – CHARTING A PATH TO THE METAVERSE TELECOM, MEDIA & TECHNOLOGY – CHARTING A PATH TO THE METAVERSE FTI Consulting, Inc. 11
SOURCES
1) CMS.gov, TechCrunch, Business of Apps
2) Medium, Finbold
3) FTI Consulting Survey Research
4) Nme.com, The Verge, Musically.com, Roblox.com, Backlinko.com

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