According to CoinDesk, Magic Leap executives believe that the metaverse will take off once it properly aligns with market needs. The mixed reality startup has raised $3.9 billion, including a recent $590 million from Saudi Arabia's Public Investment Fund. CEO Ross Rosenberg and CTO Daniel Diez stated in an interview with Venture Beat that the initial hype around the metaverse was too narrowly focused on virtual realities disconnected from the physical world.
Diez explained that the true capabilities of the metaverse will come to life when it's a fabric built of digital experiences ingrained or embedded into the physical world. Rosenberg added that most customers they talk to are trying to get something done, such as repairing, training, or designing, rather than focusing on the metaverse itself. Despite a multiyear low in venture investment in the metaverse in 2023, there are still green shoots in the industry, with metaverse tokens up significantly. However, the CoinDesk Metaverse Select Index (MTVS) is down 37.5% over the last year.
Diez emphasized the importance of focusing on the in-between times when people put their heads down and figure out what they're going to do, rather than getting caught up in hype cycles. Magic Leap has survived many hype cycles and is now entering a metaverse market that, despite setbacks, remains bullish. IDC recently forecasted that global spending on AR/VR will increase from $13.8 billion in 2022 to $50.9 billion by 2026. Diez concluded that if done right, the metaverse will enable users to be even more fully immersed in the physical world, doing things they weren't capable of doing before.
