A startup called Playbyte wants to become the TikTok for games. The company’s newly launched iOS app offers tools that allow users to make and share simple games on their phone, as well as a vertically scrollable, fullscreen feed where you can play the games created by others. Also like TikTok, the feed becomes more personalized over time to serve up more of the kinds of games you like to play.
While typically, game creation involves some aspect of coding, Playbyte’s games are created using simple building blocks, emoji and even images from your Camera Roll on your iPhone. The idea is to make building games just another form of self-expression, rather than some introductory, educational experience that’s trying to teach users the basics of coding.
At its core, Playbyte’s game creation is powered by its lightweight 2D game engine built on web frameworks, which lets users create games that can be quickly loaded and played even on slow connections and older devices. After you play a game, you can like and comment using buttons on the right-side of the screen, which also greatly resembles the TikTok look-and-feel. Over time, Playbyte’s feed shows you more of the games you enjoyed as the app leverages its understanding of in-game imagery, tags and descriptions, and other engagement analytics to serve up more games it believes you’ll find compelling.
At launch, users have already made a variety of games using Playbyte’s tools — including simulators, tower defense games, combat challenges, obbys, murder mystery games, and more.
— Playbyte (@PlaybyteInc) May 25, 2021
According to Playbyte founder and CEO Kyle Russell — previously of Skydio, Andreessen Horowitz, and (disclosure!) TechCrunch — Playbyte is meant to be a social media app, not just a games app.
“We have this model in our minds for what is required to build a new social media platform,” he says.
What Twitter did for text, Instagram did for photos and TikTok did for video was to combine a constraint with a personalized feed, Russell explains. “Typically. [they started] with a focus on making these experiences really brief…So a short, constrained format and dedicated tools that set you up for success to work within that constrained format,” he adds.
Similarly, Playbyte games have their own set of limitations. In addition to their simplistic nature, the games are limited to five scenes. Thanks to this constraint, a format has emerged where people are making games that have an intro screen where you hit “play,” a story intro, a challenging gameplay section, and then a story outro.
In addition to its easy-to-use game building tools, Playbyte also allows game assets to be reused by other game creators. That means if someone who has more expertise makes a game asset using custom logic or which pieced together multiple components, the rest of the user base can benefit from that work.
“Basically, we want to make it really easy for people who aren’t as ambitious to still feel like productive, creative game makers,” says Russell. “The key to that is going to be if you have an idea — like an image of a game in your mind — you should be able to very quickly search for new assets or piece together other ones you’ve previously saved. And then just drop them in and mix-and-match — almost like Legos — and construct something that’s 90% of what you imagined, without any further configuration on your part,” he says.
In time, Playbyte plans to monetize its feed with brand advertising, perhaps by allowing creators to drop sponsored assets into their games, for instance. It also wants to establish some sort of patronage model at a later point. This could involve either subscriptions or even NFTs of the games, but this would be further down the road.
— Playbyte (@PlaybyteInc) August 21, 2021
The startup had originally began as a web app in 2019, but at the end of last year, the team scrapped that plan and rewrote everything as a native iOS app with its own game engine. That app launched on the App Store this week, after previously maxing out TestFlight’s cap of 10,000 users.
Currently, it’s finding traction with younger teenagers who are active on TikTok and other collaborative games, like Roblox, Minecraft, or Fortnite.
“These are young people who feel inspired to build their own games but have been intimidated by the need to learn to code or use other advanced tools, or who simply don’t have a computer at home that would let them access those tools,” notes Russell.
Playbyte is backed by $4 million in pre-seed and seed funding from investors including FirstMark (Rick Heitzmann), Ludlow Ventures (Jonathon Triest and Blake Robbins), Dream Machine (former Editor-in-Chief at TechCrunch, Alexia Bonatsos), and angels such as Fred Ehrsam, co-founder of Coinbase; Nate Mitchell, co-founder of Oculus; Ashita Achuthan, previously of Twitter; and others.
The app is a free download on the App Store.
As one of the frontrunners in the race to build the metaverse, Roblox is thinking ahead to what virtual worlds really need. And while the platform has had no shortage of growth on its current path — as of July, it boasted 47 million daily active users — it’s looking to chart a course toward deeper, richer virtual experiences that will keep people coming back for years to come.
To that end, Roblox is taking careful but decisive steps toward weaving voice chat into the platform’s core experience. The first move: inviting a group of trusted developers to explore how they can integrate proximity-based audio into the wildly popular experiences that beat at the heart of the platform — from chill, vaporwavey vibe games to pulling off kickflips in a Vans-sponsored skate park.
With spatial audio, users will be able to speak with other people nearby through live voice chat. Roblox sees its new voice product as a natural extension of the way that text chat works now, but instead of text bubbles that pop up over an avatar’s head, visible to anybody around them, players will be able to talk naturally to the other people they bump into.
Say you’re hanging out in a virtual skatepark in Roblox with spatial audio enabled: skaters in the half pipe with you would sound loud and clear, just like they would in real life. But you wouldn’t be able to hear someone walking around on the sidewalk across the street, since they’re too far away. To have a private conversation with a nearby friend, you might peel off and walk toward a store down the block.
“As we think about the future of communication in the metaverse, we think that it needs to be very natural and feel very similar to the way we communicate in the real world,” Roblox Chief Product Officer Manuel Bronstein told TechCrunch in an interview. “But it also can transcend, some of the limitations that physics and space create in the real world.”
Bronstein joined the company in March, leaving Google to help realize Roblox’s particular vision for the metaverse. Prior to hopping over to Roblox, Bronstein worked on product teams at Zynga, Xbox and YouTube — three very different companies that are probably equal parts relevant to his current work.
“If you think about the metaverse as the next incarnation of where you know I could go shopping or I could go to a concert, I could go to school, I think that you need to be relevant to everybody in society and you need to both build the content, the rules, the features that support all of those behaviors,” Bronstein said. “And part of bringing voice to the platform is to ensure that our older audiences have a natural way to communicate.”
Voice chat is very much on the way to Roblox, but that doesn’t mean it will appear overnight — and that’s by design. The company is inviting an initial group of 5,000 developers, all 13 and older, to try out the new spatial voice chat capabilities in a custom-built Roblox community space.
“We’ve put a bunch of neat features in there and places for them to chat and hang out and they’re going to be able to learn from the code that we wrote for that community space… So a few weeks later or a month later they can put that into their experiences and turn it on,” Bronstein said.
Bronstein emphasizes that Roblox will take this process slowly, building new moderation and safety tools in parallel as it goes. The voice rollout will go slowly, starting with the chosen circle of developers and gradually expanding out from there as the company feels confident that it can create a safe enough environment with its moderation tools.
“I think we want to take it slowly and we want to learn as we go through it,” Bronstein said. “We may start, as I mentioned, with the developers. It is likely that right after that, we may go to an audience that is 13+ and park there for a while until we understand exactly if all the pieces are falling into place before deciding if we ever open it to a younger audience.”
To moderate its sprawl of virtual worlds, Roblox uses a blend of automated scanning and a 3,000-person safety team of human reviewers. Like in any social network, players can report, block and mute other players to make their own experiences feel more comfortable. And because half of its player base is under 13, Roblox gives parents options on what kinds of age-appropriate experiences to allow and toggles for things like text chat. If voice chat ever makes its way to younger age groups, parents would be able to disable it altogether.
Roblox’s under-13 crowd comprises a massive chunk of its user base, but a surprising number of older kids and young adults hang out there too. According to the company, 50% of its users are over the age of 13 and it’s seeing the most explosive user growth among 17- to 24-year-olds. Roblox is attracting new users, but its core users are also growing up and the company knows it needs to grow alongside them.
Whether voice chat ever rolls out for younger users or not, Roblox seems well aware that keeping a virtual environment with voice chat feeling safe and friendly is a steep challenge. The company plans to rely on user-initiated reporting as voice rolls out and it’s exploring other tools that could bolster those efforts. The company is looking at a few different tools, including automatically recording a snippet of conversation just prior to a user being reported as a way to capture bad behavior for reviewers. It’s also interested in expanding reputation systems that automatically restrict users who have a certain number of strikes against them.
Much like any social platform, Roblox will likely lean heavily on user reporting, which disproportionately shifts the burden to users on the receiving end of hate and harassment — an unfortunate outcome that no social company has properly dedicated the human resources to solving.
Bronstein describes spatial audio as “one component” of Roblox’s vision for natural communication. The next step is integrating a voice chat experience that’s persistent across experiences, letting users who know each other hang out even when they aren’t doing the same thing. For anyone who paid attention to the company’s quiet acquisition of a company called Guilded last month, that won’t come as a surprise. Though Roblox’s work on voice pre-dates the acquisition, Guilded will lay the groundwork for Roblox’s future voice plans.
A Discord competitor, Guilded similarly built out a chat platform for gamers, doubling down on the competitive gaming scene where Discord expanded its horizons beyond gaming. Beyond group voice chat, Guilded gives gamers built-in scheduling and community management tools that ease the hassle of organizing complex online social events, like wrangling 20-some-odd gamers to run raids in World of Warcraft.
“In the near term, Guilded has an amazing road map, we want to just continue with that road map and grow it without any hardcore integration at this point,” Bronstein said.
Moderation challenges aside, there’s basically nothing in Roblox’s way. The company went public in March and today it’s worth $49 billion, making it easily one of the most valuable companies in gaming. Investors, content creators and tech giants alike are going all-in on the metaverse, and really, it looks like a pretty safe bet.
Metaverse is a buzzy term right now, but it’s more shorthand than empty hype. When people talk about the metaverse, they generally want to evoke a futuristic vision of interconnected virtual worlds — online spaces that we can move through, socialize and shop within (for better or worse, that last part is key). Whether this will all be in virtual reality or not and when is a point of some debate, but really the interconnected part is the bigger challenge. In the app age, software was siloed by design. But to realize the promise of the metaverse, our virtual selves and our virtual stuff will need to be able to move through online worlds fluidly.
A few companies are ahead of the curve on this, and it’s no coincidence that two of the big ones, Roblox and Fortnite-maker Epic — best known for their virtual worlds stocked with custom avatars, in-game economies and a seamless social layer — are elevating user-created content. Those experiences, and the ability to easily hang out with friends while doing stuff in them and elsewhere in virtual space, may wind up being what the metaverse is all about.
Most adults can hardly grasp the appeal of the blocky, suburban worlds that their kids love hanging out in, but Roblox understands something fundamental about where online life is going. Or rather where we’ll all going — into online worlds like Roblox.
Netflix today announced it will begin testing mobile games inside its Android app for its members in Poland. At launch, paying subscribers will be able to try out two games, “Stranger Things: 1984” and “Stranger Things 3” — titles that have been previously available on the Apple App Store, Google Play and, in the case of the newer release, on other platforms including desktop and consoles. While the games are offered to subscribers from within the Netflix mobile app’s center tab, users will still be directed to the Google Play Store to install the game on their devices.
To then play, members will need to confirm their Netflix credentials.
Members can later return to the game at any time by clicking “Play” on the game’s page from inside the Netflix app or by launching it directly from their mobile device.
“It’s still very, very early days and we will be working hard to deliver the best possible experience in the months ahead with our no ads, no in-app purchases approach to gaming,” a Netflix spokesperson said about the launch.
Let’s talk Netflix and gaming.
Today members in Poland can try Netflix mobile gaming on Android with two games, Stranger Things: 1984 and Stranger Things 3. It’s very, very early days and we’ve got a lot of work to do in the months ahead, but this is the first step. https://t.co/yOl44PGY0r
— Netflix Geeked (@NetflixGeeked) August 26, 2021
The company has been expanding its investment in gaming for years, seeing the potential for a broader entertainment universe that ties in to its most popular shows. At the E3 gaming conference back in 2019, Netflix detailed a series of gaming integrations across popular platforms like Roblox and Fortnite and its plans to bring new “Stranger Things” games to the market.
On mobile, Netflix has been working with the Allen, Texas-based game studio BonusXP, whose first game for Netflix, “Stranger Things: The Game,” has now been renamed “Stranger Things: 1984” to better differentiate it from others. While that game takes place after season 1 and before season 2, in the “Stranger Things” timeline, the follow-up title, “Stranger Things 3,” is a playable version of the third season of the Netflix series. (So watch out for spoilers!)
With the launch of the test in Poland, Netflix says users will need to have a membership to download the titles as they’re now exclusively available to subscribers. However, existing users who already downloaded the game from Google Play in the past will not be impacted. They will be able to play the game as usual or even re-download it from their account library if they used to have it installed. But new players will only be able to get the game from the Netflix app.
The test aims to better understand how mobile gaming will resonate with Netflix members and determine what other improvements Netflix may need to make to the overall functionality, the company said. It chose Poland as the initial test market because it has an active mobile gaming audience, which made it seem like a good fit for this early feedback.
Netflix couldn’t say when it would broaden this test to other countries, beyond “the coming months.”
The streamer recently announced during its second-quarter earnings that it would add mobile games to its offerings, noting that it viewing gaming as “another new content category” for its business, similar to its “expansion into original films, animation and unscripted TV.”
The news followed what had been a sharp slowdown in new customers after the pandemic-fueled boost to streaming. In North America, Netflix in Q2 lost a sizable 430,000 subscribers — its third-ever quarterly decline in a decade. It also issued weaker guidance for the upcoming quarter, forecasting the addition of 3.5 million subscribers when analysts had been looking for 5.9 million. But Netflix downplayed the threat of competition on its slowing growth, instead blaming a lighter content slate, in part due to Covid-related production delays.
Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.
The app industry continues to grow, with a record 218 billion downloads and $143 billion in global consumer spend in 2020. Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours per day on their mobile devices.
Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year.
This Week in Apps offers a way to keep up with this fast-moving industry in one place with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and suggestions about new apps and games to try, too.
Do you want This Week in Apps in your inbox every Saturday? Sign up here: techcrunch.com/newsletters
(Photo Illustration by Jakub Porzycki/NurPhoto via Getty Images)
Creator platform OnlyFans is getting out of the porn business. The company announced this week it will begin to prohibit any “sexually explicit” content starting on October 1, 2021 — a decision it claimed would ensure the long-term sustainability of the platform. The news angered a number of impacted creators who weren’t notified ahead of time and who’ve come to rely on OnlyFans as their main source of income.
However, word is that OnlyFans was struggling to find outside investors, despite its sizable user base, due to the adult content it hosts. Some VC firms are prohibited from investing in adult content businesses, while others may be concerned over other matters — like how NSFW content could have limited interest from advertisers and brand partners. They may have also worried about OnlyFans’ ability to successfully restrict minors from using the app, in light of what appears to be soon-to-come increased regulations for online businesses. Plus, porn companies face a number of other issues, too. They have to continually ensure they’re not hosting illegal content like child sex abuse material, revenge porn or content from sex trafficking victims — the latter which has led to lawsuits at other large porn companies.
The news followed a big marketing push for OnlyFans’ porn-free (SFW) app, OFTV, which circulated alongside reports that the company was looking to raise funds at a $1 billion+ valuation. OnlyFans may not have technically needed the funding to operate its current business — it handled more than $2 billion in sales in 2020 and keeps 20%. Rather, the company may have seen there’s more opportunity to cater to the “SFW” creator community, now that it has big names like Bella Thorne, Cardi B, Tyga, Tyler Posey, Blac Chyna, Bhad Bhabie and others on board.
The TikTok logo is seen on an iPhone 11 Pro max. Image Credits: Nur Photo/Getty Images
Earlier this month, Senators Amy Klobuchar (D-MN) and John Thune (R-SD) sent a letter to TikTok CEO Shou Zi Chew, which said they were “alarmed” by the change, and demanded to know what information TikTok will be collecting and what it plans to do with the data. This wouldn’t be the first time TikTok got in trouble for excessive data collection. Earlier this year, the company paid out $92 million to settle a class-action lawsuit that claimed TikTok had unlawfully collected users’ biometric data and shared it with third parties.
Image Credits: Apple
Image Credits: Facebook
Image Source: The Pokémon Company
Image Credits: Sensor Tower
Image Credits: Samsung
South Korea’s GS Retail Co. Ltd will buy Delivery Hero’s food delivery app Yogiyo in a deal valued at 800 billion won ($685 million USD). Yogiyo is the second-largest food delivery app in South Korea, with a 25% market share.
Gaming platform Roblox acquired a Discord rival, Guilded, which allows users to have text and voice conversations, organize communities around events and calendars and more. Deal terms were not disclosed. Guilded raised $10.2 million in venture funding. Roblox’s stock fell by 7% after the company reported earnings this week, after failing to meet Wall Street expectations.
Travel app Hopper raised $175 million in a Series G round of funding led by GPI Capital, valuing the business at over $3.5 billion. The company raised a similar amount just last year, but is now benefiting from renewed growth in travel following COVID-19 vaccinations and lifting restrictions.
Indian quiz app maker Zupee raised $30 million in a Series B round of funding led by Silicon Valley-based WestCap Group and Tomales Bay Capital. The round values the company at $500 million, up 5x from last year.
Danggeun Market, the publisher of South Korea’s hyperlocal community app Karrot, raised $162 million in a Series D round of funding led by DST Global. The round values the business at $2.7 billion and will be used to help the company launch its own payments platform, Karrot Pay.
Bangalore-based fintech app Smallcase raised $40 million in Series C funding round led by Faering Capital and Premji Invest, with participation from existing investors, as well as Amazon. The Robinhood-like app has over 3 million users who are transacting about $2.5 billion per year.
Social listening app Earbuds raised $3 million in Series A funding led by Ecliptic Capital. Founded by NFL star Jason Fox, the app lets anyone share their favorite playlists, livestream music like a DJ or comment on others’ music picks.
U.S. neobank app One raised $40 million in Series B funding led by Progressive Investment Company (the insurance giant’s investment arm), bringing its total raise to date to $66 million. The app offers all-in-one banking services and budgeting tools aimed at middle-income households who manage their finances on a weekly basis.
Indian travel booking app ixigo is looking to raise Rs 1,600 crore in its initial public offering, The Economic Times reported this week.
Trading app Robinhood disappointed in its first quarterly earnings as a publicly traded company, when it posted a net loss of $502 million, or $2.16 per share, larger than Wall Street forecasts. This overshadowed its beat on revenue ($565 million versus $521.8 million expected) and its more than doubling of MAUs to 21.3 million in Q2. Also of note, the company said dogecoin made up 62% of its crypto revenue in Q2.
Image Credits: Polycam
3D scanning software maker Polycam launched a new 3D capture tool, Photo Mode, that allows iPhone and iPad users to capture professional-quality 3D models with just an iPhone. While the app’s scanner before had required the use of the lidar sensor built into newer devices like the iPhone 12 Pro and iPad Pro models, the new Photo Mode feature uses just an iPhone’s camera. The resulting 3D assets are ready to use in a variety of applications, including 3D art, gaming, AR/VR and e-commerce. Data export is available in over a dozen file formats, including .obj, .gtlf, .usdz and others. The app is a free download on the App Store, with in-app purchases available.
Jiobit, the tracking dongle acquired by family safety and communication app Life360, this week partnered with emergency response service Noonlight to offer Jiobit Protect, a premium add-on that offers Jiobit users access to an SOS Mode and Alert Button that work with the Jiobit mobile app. SOS Mode can be triggered by a child’s caregiver when they detect — through notifications from the Jiobit app — that a loved one may be in danger. They can then reach Noonlight’s dispatcher who can facilitate a call to 911 and provide the exact location of the person wearing the Jiobit device, as well as share other details, like allergies or special needs, for example.
When your app redesign goes wrong…
Prominent App Store critic Kosta Eleftheriou shut down his FlickType iOS app this week after too many frustrations with App Review. He cited rejections that incorrectly argued that his app required more access than it did — something he had successfully appealed and overturned years ago. Attempted follow-ups with Apple were ignored, he said.
Anyone have app ideas?
Facebook’s journey toward making virtual reality a thing has been long and circuitous, but despite mixed success in finding a wide audience for VR, they have managed to build some very nice hardware along the way. What’s fairly ironic is that while Facebook has managed to succeed in finessing the hardware and operating system of its Oculus devices — things it had never done before — over the years it has struggled most with actually making a good app for VR.
The company has released a number of social VR apps over the years, and while each of them managed to do something right, none of them did anything quite well enough to stave off a shutdown. Setting aside the fact that most VR users don’t have a ton of other friends that also own VR headsets, the broadest issue plaguing these social apps was that they never really gave users a great reason to use them. While watching 360-videos or playing board games with friends were interesting gimmicks, it’s taken the company an awful lot of time to understand that a dedicated ”social” app doesn’t make much sense in VR and that users haven’t been looking for a standalone social app, so much as they’ve been looking for engaging experiences that were improved by social dynamics.
This all brings me to what Facebook showed me a demo of this week — a workplace app called Horizon Workrooms which is launching in open beta for Quest 2 users starting today.
The app seems to be geared towards providing work-from-home employees a virtual reality sphere to collaborate inside. Users can link their Mac or PC to Workrooms and livestream their desktop to the app while the Quest 2’s passthrough cameras allow users to type on their physical keyboard. Users can chat with one another as avatars and share photos and files or draw on a virtual whiteboard. It’s an app that would have made a more significant splash for the Quest 2 platform had it launched earlier in the pandemic, though it’s tackling an issue that still looms large among tech savvy offices — finding tech solutions to aid meaningful collaboration in a remote environment.
Horizon Workrooms isn’t a social app per se but the way it approaches social communication in VR is more thoughtful than any other first-party social VR app that Facebook has shipped. The spatial elements are less overt and gimmicky than most VR apps and simply add to an already great functional experience that, at times, felt more productive and engaging than a normal video call.
It all plays into CEO Mark Zuckerberg’s recent proclamation that Facebook is transitioning into becoming a “metaverse company.”
Now, what’s the metaverse? In Zuckerberg’s own words, “It’s a virtual environment where you can be present with people in digital spaces. You can kind of think of this as an embodied internet that you’re inside of rather than just looking at.” This certainly sounds like a fairly significant recalibration for Facebook, which has generally approached AR/VR as a wholly separate entity from its suite of mobile apps. Desktop users and VR users have been effectively siloed from each other over the years.
Generally, Facebook has been scaling Oculus like they’re building the next smartphone, building its headsets with a native app paradigm at their core. Meanwhile, Zuckerberg’s future-minded “metaverse” sounds much more like what Roblox has been building towards than anything Facebook has actually shipped. Horizon Workrooms is living under the Horizon brand which seems to be where Facebook’s future metaverse play is rooted. The VR social platform is interestingly still in closed beta after being announced nearly two years ago. If Facebook can ever see Horizon’s vision to fruition, it could grow to become a Roblox-like hub of user-created games, activities and groups that replaces the native app mobile dynamics with a more fluid social experience.
The polish of Workrooms is certainly a promising sign of where Facebook could be moving.
Facebook’s booming business is dominated by digital ads, but it also has hardware ambitions beyond VR. During the company’s latest earnings call, CEO Mark Zuckerberg said its next product release would be a pair of smart glasses from Ray-Ban.
“The glasses have their iconic form factor, and they let you do some pretty neat things,” the Facebook co-founder said. “So I’m excited to get those into people’s hands and to continue to make progress on the journey toward full augmented reality glasses in the future.”
Facebook’s sunglasses have been the subject of rumors since 2019. Back then, sources told CNBC that Facebook was working with Ray-Ban owner EssilorLuxottica on AR eyewear nicknamed “Orion.” The glasses were billed as a full-fledged phone replacement on which you could take calls, see information and even broadcast livestreams. That inevitably drew comparisons to Google Glass (another Luxottica collab) instead of the phone-tethered Spectacles from Snap. Last year, Hugo Barra, then VP VR at Facebook Reality Labs, confirmed that the glasses would land in 2021. But, we haven’t heard much since.
For Facebook, the glasses hold the key to its future. Alongside virtual reality, augmented reality (AR) is integral to building the “metaverse,” Zuckerberg said. In the future, Facebook will morph into a shared, liveable platform that lets you “teleport” between different social experiences using VR and AR, Zuckerberg explained.
The term metaverse is the latest buzzword seized upon by Silicon Valley and futurists. While the concept has been around for well over a decade, it gained traction after the breakout success of multiplayer game creation platforms like Fortnite and Roblox. Earlier this week, Microsoft chief Satya Nadella mentioned an “enterprise metaverse” on his company’s earnings call.
For Facebook, the metaverse is more than just a fad. The company is spending billions in order to build its shared universe, which will be populated with Facebook users and digital ads, according to Zuckerberg. In order for it to become a reality, the company needs more people to buy its computing hardware. Therefore, the plan is to make those devices more affordable.
“Our business model isn’t going to primarily be around trying to sell devices at a large premium or anything like that because our mission is around serving as many people as possible,” Zuckerberg noted. “So we want to make everything that we do as affordable as possible, so as many people as possible can get into it and then compounds the size of the digital economy inside it. So that’s kind of at a high level how I’m thinking about this.”
Sunglasses aren’t the only hardware Facebook is reportedly working on. Multiple reports have claimed Facebook is developing a smartwatch with a built-in cellular connection and a detachable display. Initially, it was believed that the watch would be first out the gate, but it seems Zuckerberg had other plans.
Editor’s note: This post originally appeared on Engadget.
“I wanted to discuss this now so that you can see the future that we’re working towards and how our major initiative across the company are going to map to that,” Zuckerberg said on the call. “What is the metaverse? It’s a virtual environment where you can be present with people in digital spaces. You can kind of think of this as an embodied internet that you’re inside of rather than just looking at.”
These comments echoed an interview he gave to The Verge last week, detailing some of the company’s future goals.
The metaverse offers Facebook an opportunity to draw a line between its moonshot efforts and its core business, building a wide-reaching hub that shines on augmented reality and virtual reality platforms but feels just as friendly on mobile and desktop. Zuckerberg’s definition of metaverse is more broad than some others, but comes down to building a version of the web that feels more like an MMO than a collection of web pages.
Early renders of Facebook’s Horizon platform. Image via Facebook.
It’s hard to imagine now, but Facebook was late to mobile. A decade ago, Facebook’s apps were buggy, crash-prone HTML5 experiences, even as smooth native mobile apps were quickly becoming the standard for major software makers. By 2012, Zuckerberg realized that apps were the future — quickly becoming the present — and the Facebook founder scrambled to turn the company’s attention toward mobile at every level. Facebook doesn’t intend to make the same mistake twice. That philosophy first became abundantly clear when the company bought the industry-leading VR hardware maker Oculus in 2014.
“Mobile is the platform of today, and now we’re also getting ready for the platforms of tomorrow,” Zuckerberg said around the time of the two billion dollar acquisition. “Oculus has the chance to create the most social platform ever, and change the way we work, play and communicate.”
Becoming “a metaverse company” is a further evolution of this thinking. For many, Roblox has seemed to be the clearest embodiment of the metaverse today — a social world where users can jump between virtual experiences while creating their own experiences inside it. It’s notably not a virtual reality experience instead thriving largely on mobile and desktop. Roblox’s vision has resonated with investors, the now-public company is worth more than $45 billion — a fraction of Facebook’s value but more than almost any other games company in the West.
Facebook has been signaling its continued interest in this space. In June they bought a Roblox-like platform called Crayta for an undisclosed sum, and they’ve spent much of the last several years buying up a host of VR-focused game studios.
The company has tried to build its own VR-centric social hubs but most have fallen flat. Facebook’s metaverse-like Horizon platform garnered major headlines when it was announced nearly two years ago, but the company has had little to say during its exceedingly quiet beta period. This week, Facebook’s Andrew Bosworth detailed that Gaming VP Vivek Sharma would be taking over the effort under a new metaverse-centric product group led by Instagram’s Vishal Shah.
There’s a very particular distinction in Facebook’s choice of rebranding itself as a “metaverse” company as opposed to an AR/VR one. While some might have seen specialized hardware as essential to a spatial internet, it’s become increasingly clear that users aren’t clamoring to embrace early headsets even as other new gaming platforms greatly accelerate their growth. While the company’s Quest 2 headset has sold much better than its previous devices — according to Facebook which has yet to release any hard sales numbers — it’s unclear whether they truly need a world full of users with Facebook glasses and headsets strapped to their faces in order to embrace this metaverse ideal — or whether that would just be the cherry on top.