Author Archives: Jason Baer

The Metaverse from the Eyes of a 14-Year Old

A couple weeks ago, I posted the interview with my 10-year old to provide a glimpse into a future generation vision of video games, VR and the Metaverse.  The interview provided wonderful insights into Roblox, VR that causes pain and “food tubes”.  To mix things up, I spent some time with my 14-year old to get what proved to be a drastically different PoV:

While all of us grown-ups, the press and corporate executives are chatting it up and speculating about the future of the Metaverse, I wanted to go a bit outside the box and get a different point of view. To get a glimpse into the future generations’ true vision- I went straight to the source. I turned to none other than my 14 year-old for a candid conversation.

What are your top 3 favorite video games?

  • Grand Theft Auto
  • A Way Out
  • The Forest

Why?

They’re all multi-player games, so I can play with my friends.  Playing video games by myself seems pointless.  I only find video games fun when I play with other people.

Have you ever paid real money for in-app purchases in a video game?

Yes.

Which games?

Fortnite and Forza Horizon.

What have you purchased?

In Fortnite- I bought skins (outfits for in-game avatars) and V-bucks (in-game currency).  In Forza it was an expansion pack for the map so I could explore more of the island.

About how much real money have you spent?
In total, approximately $100.

Do you think the games can be fun without these purchases?

In Fortnite- you can 100% play without in-app purchases, but every time you log-in and log off they try to tempt you to spend as much as possible on the game.  In Forza Horizon- you can really play without the in-app purchases, but you can also buy cars which give you an advantage.  It’s pay-to-win, because you race and certain cars are better and faster for winning.

What do you like about PC  vs more standard Xbox games?

I find that playing games on the computer is way more enjoyable than Xbox.  With Xbox- I’m more relaxed sitting on the couch / bed.  When I play on the PC, it’s more interactive with friends.

What do you think video games will be like in 10 years?

You won’t be able to tell real life from the video game.  A VR / AR headset would make it so you’d either be in the video game, or the video game would be in real-life.  Distinguishing between the two would be impossible. 

What do you think of using VR glasses to play virtually inside the game?

I think that’s the next step in video games and technology in general.. being inside that and being genuinely a part of that world.  VR would allow you to get off the desk chair / couch, and be in the world that these characters are living in.

What if you could play in a virtual world?

You could essentially do anything you would like.  Theoretically, there would be no risks to playing.  You could restart if you didn’t like the outcome.  You could become anyone you want to be, and do anything you want to do.

Would you want to do that?

Not necessarily- I like living on Earth.  I think living in a virtual world would cause harm to all of humanity.  This would stem from health issues, lack of hygiene, social anxiety and taking care of the planet.   You could have brain problems from being on the screen too long and a lack of sleep.  You wouldn’t have a real social life with real friends.  There’s also the risk of getting “led on” by others that pretend to be your friend and misconceptions of who they really are.

How many hours a day would you play?

I don’t think I would participate in it. 

After you graduate college and are in the real world, would you spend time in this virtual world?

Once I graduate college, I want to live my life.  I didn’t work hard and go through school to sit on a VR headset and play video games.  I’d rather live my life, get married, get a job and be successful.  True success comes from hard work and effort.

Would you buy clothes, cars and a house in the virtual world?

If I were to play in this virtual world- I would do what everyone else was doing.  If my friends were playing and living in this virtual world, I would consider it.  I know my answer would be different now than if I was actually there and enticed to purchase.

If you had $50,000- how much money would you pay to have the best house, cars and clothes?

None.

Fireworks

It is July 4th 

I watch the fireworks light up the sky

I see the innocence of children in awe of the sights

I hear the siren song calling to prepare for the fight

I feel the chilling anticipation of what’s to come

I taste the aggression of a teen and his gun

I smell the fear of a childhood gone

The fireworks wake up all my senses

In a way that pictures can’t describe

The youthful magic they used to provide

Now has me looking for a place to hide

Freefall

This is your captain speaking

We’ve just reached

Cruising altitude of 30,000 feet

It is now time

To jump out of the plane

Check your position

Count and exit

Keep a sharp lookout

And watch your rate of decent

There is no parachute

Nothing to break your fall

But dive head first

Fasten your seat belt

And let go…

Surfing Lessons

I’ve never gone surfing (nor do I plan to), but from what I know- I think it just might be the best analogy for parenting.  While we’re helpless when it comes to the rhythm and timing of the waves of life, the most valuable lesson we can teach our children is how to surf. 

A common misnomer is that as parents- we try and control the ocean waves and steer our way to a nice, calm pool.  We want to either eliminate these waves, or step in to take the waves for our kids.  But this is not possible.  Looking at the ocean, the waves come and go.  Tall, challenging waves followed by calm, beautiful water.  All coming from the vast, endless sea that is so much bigger than any human could ever control. 

Rather than trying to accomplish the impossible task of controlling the ocean, the true goal of parenting should be to prepare them for the inevitable ups and downs of life.  Guiding them to become adept at riding the waves is so much more valuable than trying to clear the way.

In the early ‘surf lessons’ (so to speak), they will fall often.  They will lose their balance, kick and scream, tantrum and emotions will run high.  Consider treating these situations with a growth mindset.  With this alternative mindset, one can try to shift from viewing these as frustrations -to- opportunities to teach or lean into these challenges.  Rather than getting mad at the student for struggling, realize that every fall is an opportunity to course correct, improve and eventually get steady on the board.  You are the teacher, and you’ve been given the honor to teach them to navigate the waves of life.

In Buddhism, there is the notion of ‘patient acceptance’.  Easier said than done, but I believe this attitude is absolutely essential in teaching your children to surf.  There is no path other than your child getting frustrated and expressing their emotions along the journey.  But I would urge against fighting it, the ocean is too prevalent and too vast.  There is no path to surfing life without patient acceptance.  The sooner one can accept this to be the case, the sooner one can then properly focus on what really matters- the surfboard, technique and those oncoming waves.

The good news is that with the right focus and acceptance, one day your child will catch their first wave.  And with consistency and practice- they will get more steady on the board and one day learn to ride the waves on their own.  But even when they reach this point, the up and down pattern of the waves does not change in the slightest bit.  There will be highs and lows coming at them with no rhyme or reason. 

But if they can be present and live in the moment, this will enable them to enjoy and relish the peaks and try to ride these waves as long as they can.   To savor them, and place them in a jar to treasure as long as they live.

As for the moments of the day when they fall off the board and get saltwater in their eyes, don’t lose sight of the fact that there will be moments like these each and every day.  But if they can get back on the board with a strong foundation and ride the next wave- they’re one paddle closer to move on from the current pain, and experience the thrill of the next oncoming wave.

And may the goal of every parent be to get to the day where you sit on your beach chair, watch your child paddle out, stand steady on the board and ride a nice, long wave.  But that’s not all.  The true beauty comes not from the pride of their surfing ability, but from when they get knocked down by a wave, shake it off and get back on the board.. all on their own.

The Mirror

When I woke up and looked in the mirror this morning, I asked myself why would I want to see this day. 

It’s nighttime, and I can’t help but follow my usual routine. 

I hop into my rental, and wander aimlessly through the Los Angeles jungle. 

The city of angels, where my angel has not yet been found. 

It’s 2am, the bars are closed and I drive down the boulevards. 

Passing women searching for business and men searching for pleasure. 

Lost souls are looking to be found. 

Open doors are shut and shut doors are open.

I’m searching for danger- the kind that will take me down.

I can’t get my fill from the boulevards, so I on ramp to the free way.

I remember hearing you should never go past the downtown borders.

Every corridor is trouble, and trouble is the game I choose to play.

I go past the downtown border.

I remember watching movies of these streets and I want celluloid.

I drive aimlessly through this danger zone hunting for a shot.

What drives me here?

Am I looking for a cheap thrill or a dose of reality?

An ending or a new beginning?

I woke up and looked in the mirror, or was it my shadow.

Stairs

Going up the stairs

Every step is a milestone

Right after I move up one

All I want is to climb up one more

When I finally reach the peak

I climb the path to the summit

Everest is not enough

I need something more

But what if I walked down the steps

What if I wanted lower more than more?

Where would the other direction take me?

Does happiness come from more, or less?

The Metaverse from the Eyes of a 10-Year Old

While all of us grown-ups, the press and corporate executives are chatting it up and speculating about the future of the Metaverse, I wanted to go a bit outside the box and get a different point of view.  To get a glimpse into the future generations’ true vision- I went straight to the source.  I turned to none other than my 10 year-old for a candid, unfiltered conversation (over pancakes).

Documented below is an unedited version of this interview:

What are your 3 favorite video games?

  • Minecraft
  • Roblox
  • Animal Crossing

What do you like about Roblox?

There are a lot of games, and if you’re bored of one thing- you can do something else.

What’s your favorite Roblox game?

Royal High.  There’s a lot to do.

Have you ever paid real money from your piggy bank to buy Roblox or in-app accessories?

Yes- I’ve spent about $20 of my own money, and $30 I got from friends for my birthday for Roblox.

Have you spent real money on Fortnite? 

I’ve spent about $40 on Fortnite.

What have you purchased with this money?

On Fortnite- I purchased skins (outfits for in-game avatars) and a BattlePass- which gets me skins and Vbux (in-game currency).  With the Vbux- I buy more skins.  On Roblox- I’ve purchased game passes which give you an advantage.  It’s basically “pay-to-win”.

What if you played w/o purchases- would they still be fun?

Roblox will still be a lot of fun without that.  There are thousands if not millions of games.  They’re not like if you purchase- you win.  There’s a lot to do- let’s take Royal High for example.  In Royal High- there are a lot of free updates where you can do quests.  The spending of money is optional- you don’t have to do it to have fun.

How about in Fortnite?

Spending money is optional.  Buying skins is just how you look in the game- nothing more.  It doesn’t help you win.  There are 2 reasons to spend your money- to look good and to help you win.

Are you glad you spent the money?

Maybe not on Fortnite.  But on Roblox- it makes it more fun, and it goes by quicker.  You don’t have to waste time farming for diamonds for hours with the multipliers and the faster-flying game pass.  It makes it more enjoyable- you don’t have to get stuff, you can just enjoy the updates.

For Minecraft or Animal Crossing- have you purchased anything for the game? 

No, there’s not really anything available to buy.

Do you prefer the free model of Animal Crossing and Minecraft, or paid model for Fortnite and Roblox?

I prefer not to have the paid option- I like Animal Crossing and Minecraft better.

What are video games going to look like in 10 years?

You’re probably going to be able to play them in VR.  VR’s going to be the new thing.  Everyone’s going to have a room in their house where everyone can play VR.  There will be food-tubes- and food will just show up.

How many hours per day will people spend in the Metaverse?

5 hours per day.  A lot of my friends play Roblox for 5 hours per day already.

What do you think VR is?

It’s like an interactive world- you can walk in it.  There’s this one thing- you can put on this vest, and you get hit- it actually hurts. 

Does it sound cool to hurt when you get hit?

Yes.

Where did you learn about VR?

A while ago on YouTube.

Do your friends know about VR?

Yeah, I have a friend that has a VR headset.  They never want to play with me because they’re always on VR.

What do they play on it?

I have no idea, but it has voice chat, so they voice chat with other people- I’m not sure who.  They’re always on VR or watching Mr. Beast (YouTube star).

Are you excited about VR?

Thumbs up.

What do you think the Metaverse is?

It’s like a different universe on a computer or something.

If you were say 22 years old, graduated from college and in the real-world- would you spend time in VR?

Maybe.  Probably.

What would you do?

I don’t know.  What if you could go to school in VR, everyone has a headset and they’re in their own home and everyone’s in a virtual school?  It just helps.  If someone’s sick, they can still learn.  It may be a cooler way to learn, but you can’t make friends or talk to friends.  Maybe that’s not such a good idea.

What do you think of the Metaverse?

Cool I guess.  I don’t think that’s gonna happen.

If you got $50,000 when you turned 22- how much would you spend in the real -vs- virtual world?

More in the real world- so I can eat, sleep, live and don’t die.  I’d spend a lot less in the virtual world, but maybe a little bit.  Maybe like 20%.  If everyone’s doing that- then it might help my reputation.  Let’s say I’m getting a job, and they asked to see my house in the Metaverse, and I show them a really lame house and they think I’m not responsible enough.  Maybe they won’t hire me.  But if I do spend money in the Metaverse- and show them that it’s a good house, and I’m responsible- they’d say, “let’s give them the job”.

OK- we’re done, thanks for the interview.  What are you gonna do? 

I want to play Animal Crossing with my friend, it’s her birthday. 

Should we buy a present for them and drop it off today? 

I’m not sure, I don’t know what they want.  I bought them a cake in Animal Crossing.

HoodieX Builds a Metaverse Business

…a fictional glimpse into the real future

As I’m sure you’ve read, the Metaverse is all the rage right now- even though mainstream adoption could be a decade out.  With Facebook officially changing its name to Meta, as well as tech heavyweights like Microsoft and Nvidia investing heavily- there is much discussion and speculation around the future vision of what the Metaverse and its variants.

Most of the discussions focus around either the consumer, social Metaverse forthcoming from Meta sometime in the future, or the corporate version of the Metaverse coming from Microsoft in the nearer term.  But the lens that I thought would be interesting to explore is not distinctly business or consumer, but how ‘businesses’ prepare for the ‘consumer’ Metaverse.  More specifically, what businesses should be thinking about as they prepare to open up an entirely new market by peddling their wares on the social, gaming, consumer Metaverse.

To do this- let’s look at a fictional company, Hoodie-X, that makes physical clothes that are sold in retail stores and can be purchased digitally via Ecommerce stores.  They became a viral phenomenon when their hoodies were spotted as worn by tech titans in Silicon Valley.  Since then- they have become extremely popular among millennials, as well as tech employees that work remotely and in companies with a more casual dress code.  Hoodie-X just hit $1B in annual sales, and is looking to open up new markets to continue their growth trajectory.

The challenge they face is that after being in business for 10 years, they’ve saturated their top distribution options across the planet.  They sell direct-to-consumer online, and have maximized their marketing efforts across all channels- including paid ads, SEO, email, social, mobile and direct mail.  They’ve partnered with major department stores in the U.S., EMEA and APAC and have experienced significant success.  While they could invest more in these areas, they’ve started to see diminishing returns from their efforts.

While it seems like a moonshot, Hoodie-X’s CMO is extremely excited about the prospect of the Metaverse.  In the company’s annual planning meetings- the CMO presents the concept of taking their entire physical hoodie line and offering virtual replicas of every hoodie on Meta’s Horizon Worlds, which is currently the most popular Metaverse available.  While the idea may seem like a novelty, the CMO expands on their plan for the Metaverse and why this could truly create an opportunity as significant or even bigger than their physical or Ecommerce business.

Here are the highlights from Hoodie-X’s case to embrace the Metaverse:

  • Sizeable New Market Opportunity by 2030
    1. The Global Metaverse Market reached USD 21.91 billion in 2020, projected to grow at a whopping CAGR of 41.7% from 2021 to 20301
    1. In extrapolating these projections, the numbers equate to a $504 billion global total addressable market (TAM) opportunity by 2030
    1. Specifically for the luxury goods niche within the Metaverse, Morgan Stanley projects that it will present brands with a $50 billion revenue opportunity within the decade2
    1. The profit associated with selling virtual clothing will be attractive given the near zero overhead
  • Mirror Avatar and Your Wardrobe
    • Establish a model that whenever a consumer purchases a physical hoodie, grant the customer a token to seamlessly redeem a digital version that can be used in their application / game of choice
    • Seamlessly mirroring the physical and virtual goods will drive higher customer loyalty for those that spend significant time online
  • Create Limited Edition Avatar Fashion with NFT’s
    • Leverage NFT’s.  To explain this concept- think of an official, custom pair of (virtual) Nike Air Jordan 1’s that have never been seen by the world.  If you were to secure an NFT for this pair of Jordans, you would own the exclusive rights to this digital asset.  This is what your brand can produce by issuing NFT’s (non-fungible tokens), which is a unique digital identifier recorded on the blockchain to certify its undisputed authenticity and ownership.
    • The more time consumers spend online, the more concerned they may be with their digital identity and potentially enjoy showing off their one-of-a-kind, limited edition NFT’s
    • Consumers will conceivably be able to traverse different Metaverse platforms with their unique, limited edition NFT fashion assets (with blockchain proof)
  • Test New, Risk-Free Fashion Concepts
    • Create a risk-free model to test new products in the Metaverse before manufacturing and releasing new physical goods
    • Generate customer surveys to collect opinions on new designs and styles
    • Build a virtuous product development cycle of Metaverse virtual tests, customer feedback and releasing new styles based on fan favorites
  • Immersive Advertising
    • Once Virtual Reality (VR) becomes a mainstream element of the Metaverse, brands can create more immersive, embedded advertising opportunities within games, concerts, events and virtual worlds
    • When Augmented Reality (AR) enters the world of the Metaverse, brands can harness their creativity by leveraging more immersive advertising opportunities that straddle the virtual and physical worlds
  • ‘Big Brother-Style’ Data Collection
    • Once VR and AR become mainstream, although a bit creepy- the tech behemoths behind the technology may be able to collect data on your movements, eye contractions and mind reactions
    • A 2018 Stanford Virtual Human Interaction Lab paper estimated that 20 minutes in a VR simulation allows almost 2 million body language recordings3
    • Tech companies can leverage this data to gain better insights on how to drive increased adoption, engagement and purchase behavior

As you consider the case that HoodieX’s CMO has made for the Metaverse, I’ll leave you with this quote from the Forbes article, “More Than A Trend: Entering The Metaverse Will Become A Necessity For Brands”

“The virtual economy will become as important as the physical economy. Many brands intuitively or on purpose are moving towards the metaverse which is creating a global economy on track to exceed the current one many times over. There will be no other option but to join it. Otherwise, you will not survive as a company.”

  • Vlad Panchenko (CEO and Founder at DMarket, a marketplace and technology for building virtual worlds) 4

1 – Metaverse Market Worth USD 21.91 Billion In 2020 and is Predicted to Grow at 41.7% CAGR by 2030 – Report by Market Research Future (MRFR) – https://www.globenewswire.com/news-release/2021/12/14/2351695/0/en/Metaverse-Market-Worth-USD-21-91-Billion-In-2020-and-is-Predicted-to-Grow-at-41-7-CAGR-by-2030-Report-by-Market-Research-Future-MRFR.html

2 – Lucrative for luxury: Metaverse could untap $50bn for brands by 2030 – https://www.cityam.com/lucrative-for-luxury-metaverse-could-untap-50bn-for-brands-by-2030/

3 – Conquering the metaverse: 3 ways that businesses can find real customers in virtual worlds – https://fortune.com/2021/12/03/metaverse-business-nfts-real-estate-virtual-reality-roblox/

4 – More Than A Trend: Entering The Metaverse Will Become A Necessity For Brands https://www.forbes.com/sites/cathyhackl/2021/06/24/more-than-a-trend-entering-the-metaverse-will-become-a-necessity-for-brands/?sh=40ce569555ab