Category: The Metaverse

Meta Connect 2023 and the Meta Quest 3 Mixed-Reality Headset, with Updates from the Virtual Event Livestream: Do *YOU* Want Snoop Dogg as Your Dungeon Master, or Paris Hilton as Your Detective?

UPDATE Sept. 28th, 2023: If you’re looking for a good, concise summary of the Meta Connect 2023 event, TechCrunch has you covered.

The Meta Connect 2023 virtual event will start on September 27th, 2023 (today) at 10:00 a.m. PST / noon CST / 1:00 p.m. EST / 5:00 p.m. BST. Meta (the company formerly known as Facebook) will stream the event live on its website. You can also watch the stream on YouTube, Twitch, and via the official Meta page on Facebook. The event will start with a keynote by Meta’s CEO, Mark Zuckerberg, who is expected to officially launch the Meta Quest 3 headset, talk about its features, and give an update on where the company is planning to go with its virtual reality, augmented reality, mixed reality, and extended reality (VR/AR/MR/XR) initiatives over the next few years.

As the BBC reported yesterday, Meta is facing growing skepticism about its metaverse plans and their impact on the company’s bottom line:

Remember the metaverse?

For a while it dominated tech news. A virtual reality world that would be so immersive, so engaging, that we would want to spend part of our lives in it.

Driving the metaverse narrative was Mark Zuckerberg.

The tech billionaire was so committed that in October 2021 he changed Facebook’s name to Meta…

No one could accuse him of a lack of ambition.

But almost two years on, Zuckerberg’s vision of the metaverse is in trouble.

In April, he was forced to deny that he is now jettisoning the idea.

“A narrative has developed that we’re somehow moving away from focusing on the metaverse,” he told investors in April. “So I just want to say upfront that that’s not accurate.”

On Wednesday, the company holds its annual VR event called Meta Connect.

It’s a chance, perhaps, for Zuckerberg to again explain his reasoning for taking an extremely profitable social media company and diverting its focus to an extremely unprofitable VR venture.

How unprofitable? Well, the most recent figures from Meta are eye-watering.

Reality Labs – which as the name suggests is Meta’s virtual and augmented reality branch – has lost a staggering $21 billion since last year.

Part of the losses reflect long-term investment. Meta wasn’t expecting short-term returns. But the worrying fact for the company is that, so far, there is very little evidence that this enormous punt will work.

I fully expect an announcement that Horizon Worlds, Meta’s social VR platform, will be rolling out to non-VR/flatscreen web and mobile users. Using a Meta Quest 2 test unit purchased for the virtual reality lab project I am involved with at the University of Manitoba, I have paid several short visits to Horizon Worlds, and I am, to put it politely, not a fan. Horizon Worlds is something even worse than boring—it’s soulless. It looks and feels like it was put together by a bureaucratic committee of engineers that was given a task to do, in order to report back to the executives that they did something, but the builders had no real understanding, appreciation, or love of what social VR is and can be. To be frank, I don’t believe that expanding Horizon Worlds access to web and mobile users is gonna bring a hell of a lot more users to the platform. In my opinion, it’s a dog that needs to be taken out back and shot, to be put out of its misery. 🐕

I also briefly tried out Horizon Worlds’ corporate cousin, Horizon Workrooms, and as I have said before on this blog, I find it very hard to believe that any company would actually use this product for a real-world business purpose. In fact, Meta has commanded its employees to “fall in love with Horizon Worlds,” a sign that even their own staff don’t want to use it. (Ironically, Meta is among the many tech firms now requiring its employees to actually show up in their offices 3 days a week, or face termination. I’m quite sure that that strict little edict from HR is really, really gonna encourage more Meta employee uptake of Horizon Workrooms!) I expect some more announcements of integrations with products like Microsoft Office and Zoom, but I’m not expecting anything that is going to make corporate bean-counters sit up and say, “hey, we gotta buy a fleet of headsets, immediately!”

Like many of you, I will be watching the Meta Connect 2023 event live, and I will be updating this blogpost with news as it happens. Stay tuned!

UPDATE 9:28 p.m.: I forgot to mention that somebody—probably Mark himself—is going to proudly announce that the avatars in Horizon Worlds and Horizon Workrooms now have legs. Yawn.

Mark Zuckerberg: Hey, look! Our avatars have legs!

Second Life: Isn’t that just adorable. Meanwhile, our avatars can look like this…:

MX123

Second Life: …and your avatars look like this:

(And yes, I know, comparing a social VR platform like Horizon Worlds to a flatscreen virtual world like Second Life, which also has a 20-year head start, is not fair. But honestly, Meta’s avatars have a long, long way to go, in my opinion. Obligatory editorial.)

UPDATE 11:28 a.m.: I’m signed in to a livestream from one of the virtual reality YouTubers I follow, Virtual Reality Oasis, which apparently is starting half an hour before the actual Meta Connect event with a bit of a pre-show, perhaps. I will probably stay on this channel, for the additional commentary by this YouTuber (there’s also a very active comment stream to follow), but I might switch to another source later on. I will be making full use of two monitors here at work on my desktop PC—one for watching the livestream, and the second for blogging on the fly!

UPDATE 11:40 a.m.: Mike’s Virtual Reality Oasis livestream has started; apparently, he is located in a “side office” near backstage or behind the scenes at the Menlo Park auditorium, where the Meta Connect event is taking place (I think I got that part right!). He and another VR expert (whose name I unfortunately didn’t catch) will be providing some colour commentary and even taking questions from the over 3,700 livestream viewers. (Unfortunately, this livestream video was marked private after the event, so I cannot link to it.)

UPDATE noon: Meta has just announced a 30-minute delay to the start of the event, which is rather disappointing. Apparently, instead of an indoor stage, this event will be taking place on an outdoor stage in Menlo Park. I will be able to view and post blog updates until around 2:00 p.m. my time (Central Standard Time), so I am only going to be able to comment on the first hour-and-a-half of Meta Connect.

UPDATE 12:18 p.m.: I’ve switched to a different livestream, this one by IGN, with almost 7,000 people watching. Virtual Reality Oasis was reporting problems with both video and audio from the Meta Connect livestream, so I’ll be switching back and forth. (I could also watch it via Facebook, but I’ll be damned if I have to set up a Facebook account just to do that! Back in 2018, I kicked Facebook to the curb, and I have zero intention of returning to its surveillance-capitalism embrace, with the sole exception of a Meta account I set up for the test unit Meta Quest 2 headset I got.)

UPDATE 12:31 p.m.: The show has finally started!

Mark starts off with the usual piffle about “the power of human connection”. 🙄 He’s talking about being in a room with a mixture of real-life humans and holographic humans and embodied AI tools. Mixed reality, smart glasses, and AI are key to what Mark calls the metaverse.

Mark introduces the Quest 3, which he calls “the first mainstream mixed-reality headset” to applause from the crowd, followed by a brief presentation of various examples of this mixed reality in a number of games and apps. Xbox cloud gaming is coming to the Quest later this year.

Augments are persistent, spatially-anchored digital objects (like digital portals and photo albums you can hang on your walls). You can double-tap on your headset to return instantly to the real world.

Now he’s talking about content, including new titles. Meta Quest 3 has twice the graphics performance of any previous headset and is 40% thinner than the Quest 2. Roblox is launching for the Quest, which is going to bring a lot of younger users to the headset!

Mark teased new Horizon content, saying that the visuals are improving. He also talked about tools for business, citing productivity and work apps. Coming soon is something called Meta Quest for Business, with integrations with apps like Office 365 (something that was previously promised). Lack of details is very frustrating!

Meta Quest 3 is shipping October 10th for US$499 (Mark slipped up and said “August 10th” LOL!).

UPDATE 12:47 p.m.: Now the talk switches to artificial intelligence, which is hardly surprising since that is where all the hype went after the previous metaverse hype cycle (which included Mark renaming his company from Facebook to Meta!). A new tool, called Emu (Expressive Media Universe) is an image-generation tool similar to DALL-E 2. You will be able to use AI chat to create stickers (wow, groundbreaking!🙄). AI editing tools will be added to Instagram next month, with a cute demo of Mark applying various textures to his dog, Beast.

(Right now Mark is just spouting AI word salad, and my eyes are rolling so hard they disappeared into my skull.)

Meta AI: your basic assistant you can talk to like a person, help you answer basic questions and requests. Based on Llama 2 large language model, through a partnership with Microsoft and Bing search. Emu: is built into Meta AI with the “/imagine” prompt built into various apps.

Max the sous-chef AI who will help you come up with a recipe, etc. Lily, the personal editor AI that can help you brainstorm and improve your writing. Lorena the travel expert AI to recommend a good national park to take the kids to. These are three of the many different types of AI chatbots Meta is dreaming up to answer queries and entertain you. Meta actually appears to have hired actors and celebrities to play these roles! (Honestly, this is kinda creeping me out.)

Oh, sweet minty Jesus, Snoop Dogg has been cast as your Dungeons & Dragons dungeonmaster. Nope, I’m out…NOBODY WANTS THIS, MARK. I never want to see that cursed image again!!! Who the fuck thought this was a great idea? Mark brought his keynote to a screeching halt as he fumbled with his cellphone to “chat” with Snoop Dogg (who I’m sure is being paid a pretty penny to give up his likeness for this ridiculous idea).

Snoop Dogg is your D&D dungeonmaster! (NOPE.)

Among the many other “experts” who signed on to be the face of a Meta AI chatbot is Paris Hilton, who role-plays your “detective” (I kid you not):

NOBODY ASKED FOR THIS, MARK!!!

Dear God, and there are plans to insert these and other AI chatbot avatars into Meta’s version of the metaverse. (I personally would pay good money to avoid any metaverse that has Snoop Dogg and Paris Hilton in it, kthxbai!) And this is not the first time Paris Hilton has tried to imprint herself upon a metaverse: click here to read all about the MATERIA.ONE/Staramba Spaces metaverse debacle, which offered Paris-Hilton-themed NFT metaverse parcels. (Hulk Hogan was another celebrity involved in that particular mess, too.)

Here comes the part where Mark pays lip service to safety and security, since there are some serious user privacy concerns associated with all this new, AI-powered tech (something which Meta has notably been egregious about in the past). “I’m really optimistic about this,” says Mark, and once again, my eyes rolled so far back I was staring at my brain. Yeah, sure, Mark, I really want to have my every conversation with Detective Paris Hilton strip-mined as yet another opportunity to provide data to sell to advertisers for the next Cambridge Analytica scandal. 🙄🙄🙄🙄🙄 As a commenter stated on the r/technews subreddit (source):

Does anyone else think AI chatbots are just another way to harvest data about people by engaging them in conversation?

Now Mark turns to the next generation of Ray-Ban smart glasses, which I must confess look a lot like regular glasses with slightly thicker arms. These new glasses will include Meta AI, so you can bring Snoop Dogg or Paris Hilton wherever you go (shudder). Next year, a software update will make these glasses multi-modal, so you can read signs in foreign languages, for example, which sounds kinda cool.

A brief video was shown where you will be able to livestream what you see from your own glasses to others, using as an example a racecar driver who is presenting what he sees to other viewers watching on their cellphones. These new glasses are available starting Oct. 17th for US$299.

UPDATE 1:16 p.m.: Mark has wrapped up his keynote, and is passing the torch to Meta’s Chief Technology Officer, Andrew “Boz” Bosworth, who in previous years has not shied away from speaking his mind and even criticizing what he sees as some missteps the company has made. He’s talking about the ability to double-tap on the side of your Meta Quest 3 to switch seamlessly between mixed-reality and pass-through of the real world.

You will no longer have to manually set up your play boundary in the Meta Quest 3, which will automatically map the room you are in, and the objects that are in that room, when you put the headset on:

(There are some livestream skips happening now, so I might miss something.)

Okay, I am taking a break, but if I have time later on today, I will add more.

UPDATE 2:02 p.m.: Here’s an article from Variety on the new line of Meta AI chatbots, which apparently also includes Kendall Jenner/Kardashian roleplaying as your “big sis” (gag). Here’s a quote from that article:

Meta CEO Mark Zuckerberg, in unveiling the new AI chatbots, said the company wanted to create AIs that have distinct personalities, opinions and interests. “This isn’t just gonna be about answering queries,” he said. “This is about entertainment and about helping you do things to connect with the people around you.”

For now, the celebrity chatbots respond in text — their avatars don’t actually speak their responses. Zuckerberg said voice for the AIs will come probably early next year.

The line-up of Meta AI celebrity chatbots includes Kendall Jenner of the Kardashian clan

UPDATE 5:44 p.m.: Wow, I thought I had been sarcastic in my remarks about these AI chatbots, but the people over at the celebrity subreddit r/Fauxmoi, are savage! Here’s just a sample of their comments (source):

Ah yes, all the people you’d regret starting a conversation with.

Lmao I hate this.

Also: “Kendall Jenner as Billie, no-BS, ride-or-die companion” 😂 So funny, coming from someone with even less personality than a robot.

It’s giving Black Mirror.

Sounds horrifying. Hopefully it flops hard enough to discourage more companies from doing shit like this.

What the hell is this? Like what is it supposed to be/do? Paris Hilton is ‘Amber’ who is your detective friend to help you solve whodunnits. So they’ve taken real people and turned them into avatars but then also they aren’t really THAT person, they’re someone else brand new who has a completely different personality? What’s even the point?
Please can someone explain??

Meta is embarrassingly out of touch with the world, in a very “hello, fellow teenagers!” kind of way…

So, as you can clearly see, I’m not the only one who thinks this is just weird. I’m left wondering how much of that $21 billion Meta Reality Labs spent this past year went to pay for all these celebrities to agree to be the faces of their chatbots. And I wonder how they’re going to feel when (as is almost inevitable) their chatbot starts to act up and spit out unacceptable or incorrect responses to user questions? What will Paris Hilton do when the chatbot who wears her face goes rogue? I’m quite sure she did not think through all the potential implications of signing away her likeness on the contract Meta dangled in front of her! It really is very Black Mirror.

UPDATE Sept. 28th, 2023 2:54 p.m.: I have gotten busy with my full-time paying job as a university librarian, so I haven’t had much of a chance to watch the rest of yesterday’s virtual event. Once I do, I expect that I will have more to comment on!

EDITORIAL: How Big Tech Layoffs, the Deepening Crypto Winter, and Global Chaos Will Impact the Metaverse

So (like many of you), have been following the news media these past seven days, and between the U.S. midterm elections, the jaw-dropping layoffs at both Meta and Twitter, and the collapse of major cryptocurrency exchange FTX, it’s been quite a week!

As I write this, I am listening to a Sept. 22nd, 2022 report written by Adam Fisher for clients of the investment firm Sequoia, titled Sam Bankman-Fried Has a Savior Complex—And Maybe You Should Too.

UPDATE 3:08 p.m.: Sequoia has just removed Adam’s report from its website but, as always, the Internet Archive’s Wayback Machine has you covered! WARNING: I listened to all one-and-a-half hours of the audio version of this article, and I want that time back! The level of hubris and cringe in this article is off the charts!

Given what’s happened in the past 48 hours, this report has aged like milk—badly. I had bookmarked it yesterday, and when I went to revisit the page today, I noticed that it had been updated:

UPDATE: Nov 9, 2022: Since this article was published, a liquidity crunch has created solvency risk for FTX and its future is uncertain. Many have been affected by this unexpected turn of events. For Sequoia, our fiduciary responsibility is to our LPs. To that end, we shared this letter with them today regarding our investment in FTX. For FTX, we believe its fiduciary responsibility is first to its customers, and second to its shareholders. As such, FTX is exploring all opportunities to ensure its customers are able to recover their funds as quickly as possible.

Of course, the best front-row seat to the three-ring circus that is crypto is the r/Buttcoin cryptosnark community over at Reddit, and let me tell you, there has been no shortage of things to talk about. Many there predict that (much like the unraveling of the LUNA cryptocurrency “unraveling “stablecoin” on May 7th, 2022, which in turn led to the failures of cryptofirms like Celsius and Voyager) there will be a significant impact to the sudden FTX implosion (Sequoia announced that they have written down their investment in FTX to zero). Even in the crazy world of crypto, the speed with which Sam Bankman-Fried has fallen off his pedestal and destroyed his reputation and his companies (not to mention his investors’ money) is bonkers. But that’s not the only big news these past seven days.

First: The crypto crash is looking more and more like a sustained crypto nuclear winter. Blockchain is now tainted, perhaps irredeemably so, and blockchain-based metaverses are tainted by association. What this means is that the already-established, relatively stable platforms (Decentraland, Voxels, Somnium Space, and a handful of others) are going to have a very difficult time selling NFT-based land, avatar accessories, etc., as well as encouraging new users to come and set up shop. We’re rapidly reaching the point that the general, non-tech public will run the other way when crypto, blockchain, or NFTs are mentioned, given the unending litany of bad news.

People and companies who invested in these platforms at the height of the hype cycle may have to make some hard choices between holding on (perhaps forever) in hopes of seeing a profit, or being forced by circumstances to sell at a loss, because they desperately need to get out of the market. (Perhaps they worked at Meta or Twitter or some other company downsizing during this increasingly brutal recession?). In my opinion, this will keep prices for NFT properties at or near rock-bottom for the foreseeable future, and it will impact these metaverse firms and their future development plans.

But, as bad as that is, the news is even worse for those blockchain-based metaverse projects which have not yet launched. In my opinion, many of these projects are doomed to fail, taking their investors’ money along with it. Some were designed to be rugpulls from the very beginning, hoping to cash in on the ignorant, while others were just weirdly-hatched and poorly-executed but honest proposals (e.g. Cirque de Soleil’s Hanai World project, which I am told has now folded).

Second: Meta is wounded, having lost the public’s trust and investors’ confidence, and facing increasing blowback for its decision to heavily invest in the metaverse and virtual reality. Meta’s missteps are negatively affecting the general public’s impression of the “metaverse”.

Say the word “metaverse” to your average man (or woman) on the street and you probably would get one of the following two responses:

  1. The “metaverse” is Meta/Facebook’s Horizon Worlds and Horizon Workrooms only; or
  2. The “metaverse” consists of the blockchain/crypto/NFT-based platforms only, e.g. Decentraland, Voxels, Somnium Space, The Sandbox, etc.

I’ve already dealt with the blockchain-based metaverses above; now let’s turn to Meta. Mark Zuckerberg and his team at Meta have spent a fair deal of time and money to promote Meta’s visions of the “metaverse”. Mark doesn’t want you to spare a thought for the countless other metaverse platforms which have been in development for years, and in some cases like Second Life, decades. He wants you to focus on Meta. Meta, people! Pay no attention to those other people!!! (Yeah, I know; it’s going about as well as you can expect, given people’s lack of trust in Mark or his company.)

Things have not been going especially well for Meta at the moment, with numerous new media reporting on its financial turmoil, as Mark Zuckerberg invests billions of dollars into research and development to build his vision of the metaverse. Venture capitalist Nathan Benaich recently tweeted (please note that Meta Reality Labs is the R&D arm of Meta working on VR/AR/MR/XR projects.):

In fact, things have been going so badly for Meta lately that many metaverse pundits (myself included) have begun to worry that it is tainting the general public’s perception of the “metaverse”, perhaps unfairly so. Tony Vitillo (a.k.a. SkarredGhost), an Italian man whose blog, The Ghost Howls, covers the VR/AR/MR/XR industry and the metaverse, wrote a recent editorial which I think needs to be read. He echoes what I and other metaverse pundits have noticed for quite some time now: the general public’s mood on the metaverse has soured quickly.

Tony Vitello points out something that many of us writing about the metaverse have noticed for quite some time now: the concept of the metaverse is developing a bad reputation

In an article titled Meta bad, metaverse bad, Tony writes:

After my usual Sunday tour of Twitter and LinkedIn feeds to gather news for my weekly newsletter, I feel the need of writing a rant about a trend I’m seeing online after the Meta Connect about Meta and its involvement in the “metaverse” field.

Many journalists of important tech magazines (TechCrunch, Business Insider, etc…) are all playing a common sport now: targeting Meta and Mark Zuckerberg. They are all writing posts about how Meta has failed, the metaverse has failed, the Meta Quest Pro failed, and also Zuck has failed. Everything is a huge failure. I admit that this news has caught me by surprise, because I have many projects in XR that are doing pretty well, and actually this has been one of the best moments to be in the ecosystem for me. I’m sorry that I hadn’t received the memo that everything failed: I’ll stop doing what I’m doing now and immediately go looking for a job to make fries at McDonald’s.

Look, I get it. Bad news draws eyeballs and clicks, and most people don’t like or trust Mark Zuckerberg or his Meta/Facebook empire. So the negative press pile-on in the wake of the Meta Connect 2022 event was not unexpected. Here’s an example of the recent coverage, by Paul Tassi of Forbes:

Meta shocked the financial world this Thursday by posting a 52% profit decline, its second straight quarterly decline, and a revenue decline of 4% year-over-year. This decimated their stock so badly with a 24.5% drop that it caused financial analyst Jim Cramer to break down crying and apologize on air for having faith in the company.

A main culprit of Meta’s decline is the thing it was named after, Mark Zuckerberg’s relentless pursuit of the metaverse through the company’s Reality Labs division, which has lost $9.4 billion this year so far, and there are warnings that bigger and broader losses are to come in 2023.

And, of course, the news yesterday that Meta was laying off over 11,000 employees has not helped matters in the slightest. It’s not yet known how these massive layoffs will affect Meta’s work in virtual reality, augmented reality, and the metaverse, but I wouldn’t be surprised if a few projects in that area are trimmed. Many in the financial community are attacking Mark Zuckerberg and his desire to repivot Meta to be a metaverse company, and the negative blowback will also impact other companies working in this space. I’ve written more about this on my blog in this August 2022 editorial, How the Crypto Crash—and Meta’s Missteps—Are Souring the General Public on the Metaverse, so rather than repeat myself, I will direct you there if you want to learn more of my thoughts on the matter. On to the next point!

Third: Elon Musk is killing Twitter, and its death throes, plus Meta’s continued struggles, will lead to many people radically rethinking their use of social media, and leaving Twitter, Facebook, and Instagram.

Image source: r/EnoughMuskSPam subreddit on Reddit

If you haven’t got the memo yet, surveillance capitalism and algorithmically-driven echo chambers/walled gardens are about as popular as crypto nowadays. Despite daily reassurances from the Chief Twit himself, the MIT Technology Review reports that Twitter may have already lost one million users, many of whom have moved to Mastodon and other federated services, beyond the control of capricious billionaires. And, while not in dire straits like Twitter, Meta’s social media platforms are similarly bleeding users, as the younger generations abandon Facebook and Instagram for TikTok (which, of course, has its own user data privacy and surveillance capitalism issues, not to mention a parent company now marketing a standalone VR headset to compete with Meta, but that is an issue for a different editorial).

How will this affect the metaverse? Well, for starters, it’s going to be a lot harder for metaverse-building companies to get attention using traditional social media during this time of turmoil and upheaval, which is their primary form of advertising. For example, Mastodon is notoriously resistant to influencer culture and corporate shilling, even going so far as to ban entire instances/servers to avoid being tainted by the filthy lucre of capitalism. (For example, the overly-protective but proactive moderator of the well-established scholar.social Mastodon instance/server just banned the new journa.host instance, because of problems the latter has had in setting up their server, which means that journalists who set up accounts on journa.host are barred from seeing what is going on over at the scholar.social server. These people, many of whom were burned by older forms of social media, are not playing around!)

Another example of the impact: I have unfollowed all the people I used to follow on Twitter, deleted almost all of my tweets, and deactivated my account, in direct reaction to the callous, heartless way that Elon Musk handled his layoffs, gutting half the Twitter staff (I wrote about it in an update at the end of my previous blogpost). This means that I deliberately cut off one venue by which I leaned about news and events taking place in the VR/AR/MR/XR and the metaverse. However, I am still a member of almost 100 different Discord servers, including the 715-member RyanSchultz.com Discord, and my connections there keep me just as well-informed, without having to take part in Facebook or Twitter! I am also quite active on Reddit, although lately most of that time has been spent lollygagging in r/Buttcoin! 😜

Finally, we are entering a severe global recession, with both mass layoffs (see above) and staffing shortages, combined with skyrocketing inflation, which means that we are going to continue to see chaos, disorder, and upheaval all around the world. The war in Ukraine is still upending global supply chains, and China’s continuing strict COVID lockdowns are still impacting product manufacturing. Oh, and did I mention that we need to act now to put the brakes on global climate change before many parts of the world become inhospitable and even uninhabitable? If you’re not depressed, then you haven’t been paying attention!*

Fasten your seatbelts, kids; I have a feeling it’s going to be a bumpy ride, and not just one bumpy night! While chaos can be liberating for some people, it is anxiety-inducing for many others (including myself). We are also still operating under an ongoing pandemic that is absolutely NOT over (for example, my best friend’s 92-year-old mother passed away from COVID-19 in hospital a couple of weeks ago). I am, still, barely leaving my apartment, and my university still has an indoor facemask mandate in place. (Good thing my passionate hobby is virtual reality and the metaverse! Avatars can’t catch the virus. 😉 )

In summary, this global chaos (plus all the other points I made above) will impact the people and companies building the metaverse, as well as the people using it! There will be new challenges, but also new opportunities. Expect the unexpected!

* If you are struggling with your mental health, at the start of the pandemic I pulled together a list of helpful resources, which you can find here. It’s a little out-of-date, but most of the links should still work. Remember, help is out there if you need it!

Everyrealm: The Multi-Million-Dollar Metaverse Company You Probably Haven’t Heard of Yet (But You Will!)

Republic CEO Kendrick Nguyen (image source)

This man is Kendrick Nguyen. Five years ago, he founded an investment firm called Republic, focused on opportunities in startups, real estate, video games, and crypto. On Oct. 19th, 2021, TechCrunch reporter Connie Loizos wrote:

Where many see regulatory murkiness, the five-year-old, New York-based investing platform Republic sees opportunity. Indeed, while many outfits grapple with whether to distance themselves from certain digital assets, Republic — whose CEO, Kendrick Nguyen, started his career in securities litigation with Goodwin Procter — has focused from the start on establishing itself as a go-to brand for what Nguyen calls “compliant tokenization.”

…

Just today, the company is announcing a $150 million Series B round led by Valor Equity Partners, which follows a $36 million Series A round that the company announced in March from Galaxy Interactive, Motley Fool Ventures, HOF Capital, Tribe Capital and CoinFund. (Those earlier investors just re-upped, by the way, and were joined by new backers Pillar VC, Brevan Howard, GoldenTree and Atreides.)

Altogether, says Nguyen, Republic, which employs 200 people, had raised more than $50 million in equity financing ahead of this newest round, and more than $20 million in a token sale.

The outfit is certainly busy putting it all to work. Republic already comprises several different business arms, including a popular retail investment platform that invites people to invest with as little as $10; a private capital division with almost $1 billion in assets under management that funnels accredited investors into startups; and a blockchain consultancy arm that provides technical, financing, distribution and tokenization services.

Republic also right now has two affiliated closed-end investment funds deploying capital into startups and crypto projects, along with a digital investment arm operating as Republic Realm that focuses exclusively on metaverses and NFTs.

Anita Ramaswamy wrote in a follow-up TechCrunch article on Feb. 10th, 2022 that Republic has spun off its Republic Realm arm into a separate company, helmed by CEO Janine Yorio. Republic will be a minority investor in this new company, which has been rebranded as Everyrealm:

Some statistics taken from the brand-new Everyrealm website include the following:

My avatar standing in the Metajuku shopping district in Decentraland

It’s clear that Everyrealm has serious money to spend (they’ve already raised US$60 million), and they intend to invest it in a variety of metaverse platforms! Anita reports:

Everyrealm hopes to become “the gateway to the entire metaverse ecosystem,” according to the company. It is invested in 25 different metaverses and owns 3,000+ NFTs today, Yorio said.

“We started out investing [in the metaverse], but we’ve since expanded our mandate to do a lot more than that. We see ourselves as developers of metaverse content, so we don’t just passively invest and sit back and wait for other people to build things,” Yorio said. The company has built on top of many of its virtual properties — for example, it launched a retail store concept in Decentraland two weeks ago, which it plans to expand into other metaverse platforms, Yorio said. Indeed, 10,000 virtual items in the store sold out in the span of an hour, she added.

Not too long ago, I wrote a blogpost about the then-Republic Realm’s foray into education, writing with just a smidgen of snark about something called the Republic Realm Academy:

Apparently, they have set up a virtual campus in the blockchain-based social VR platform Somnium Space, and Somnium Space CEO Artur Sychov himself will be teaching “a class at the Academy about VR and the future of the metaverse:”

Tuition for four weeks, which includes a “limited edition Republic Realm Academy NFT Tuition Badge”, which will “be your campus ID card and unlock all Republic Realm Academy resources and initiatives at the start of the term”, six online courses, plus “limited office hours with professors, subject to availability”, costs US$1,000…

Let’s face it: it’s to Cathy’s and Artur’s and so many other people’s advantage to sell (and yes, I deliberately use the word sell) as many people as they can on this frankly blinkered perspective on the metaverse—even to the point of offering thousand-dollar certificates for things could probably be learned just as easily from others for free! The overall messaging here is that the non-blockchain-based metaverse platforms which predate this boom in artificially-scarce NFT-based real estate are simply not worth bothering with or investing in.

Well, I now publicly will eat some crow, because buried in Anita’s TechCrunch report is the following news nugget:

Everyrealm also operates a virtual educational campus called Realm Academy in the Somnium Space metaverse, where users can learn more about web3 concepts through online courses. Its inaugural class has 500 students who have paid $1,000 each to attend, Yorio said.

If Janine Yorio is to be believed (and frankly, I have zero reason to doubt her), Everyrealm cleared 500 x US1,000 = US$500,000 from the first offering of their six-course educational program. That’s right—a cool half-million dollars! I guess I was seriously wrong about people not being interested in signing up for their courses, and I am willing to admit that I was wrong. Hey, it does happen—sometimes… 😉

And, I was also wrong about something else. As it turns out, Everyrealm has not limited their investment to solely the metaverse platforms with NFT-based real estate! Today I learned that the company is involved in a major event which is taking place this week in Second Life, the Metaverse Fashion Week 2022:

As featured in Vogue today, designer Jonathan Simkhai has partnered with metaverse developer Everyrealm and metaverse production house Blueberry Entertainment to produce an exciting new Metaverse Fashion Week event inside Second Life – and you are invited!

Second Life community members can be among the first to preview all-new exclusive spring 2022 collections this week by attending any of the several runway shows scheduled throughout this week. 

Check out this video sneak peek of what to expect on the runway. Video Production by Vrutega.

Irritatingly, the above link to “several runway shows scheduled throughout this week” only takes you to the sim where the events are taking place, but without the details of when they were happening! Fortunately, Inara Pey has all the details in a detailed write-up on her blog:

The individual in question is New York fashion designer and 2015 CFDA/Vogue Fashion Fund winner, Jonathan Simkhai. As a part of the New York Fashion Week event, he offered a special preview of some of his designs from his Autumn / Winter 2022 (AW22) collection at a special fashion show that took place in Second Life.

In all 11 pieces from the collection have been visualised for Second Life by none other than Mishi McDuff (aka Blueberryxx), founder and owner of SL’s popular Blueberry brand (and, I will admit, one of my go-to designers on the admittedly rare occasions I feel I need to spruce up my virtual wardrobe). In bringing the designs to SL, Blueberry has also given them a special “metaverse flair” – utilising the unique advantages of the digital world to offer twists to some of the items that cannot be replicated in the physical world – such as a sequined dress that gradually loses its embellishments and morphs into a bodysuit as the model walks the runway.

The items were presented to an invited audience of models, influencers, celebrities, and journalists from the fashion, technology and lifestyle industries. They had the opportunity to see the virtual items ahead of Simkhai presenting their physical world equivalents on the New York catwalk, so the guests could witness the virtual garments and their unique properties up close – and even try them on.

I think that this is a brilliant move by Everyrealm. Why? Because none of the NFT metaverse platforms they currently invest in (Decentraland, Somnium Space, Axie Infinity, etc.) have anything which compares to the mature, fully-evolved dressable avatar system which has evolved over the 18+ years of the history of Second Life! Here’s one of the pictures used in the (unfortunately paywalled) Vogue Business article:

And you can bet that Linden Lab is on board with this; how often does Second Life get mentioned in Vogue, plus fashion and tech news outlets like British GLAMOUR, Mobile Marketing, and the Fashion Network? As Inara says:

This may sound like something straight out of 2006-2008, when many physical world brands tried to hop into SL in the belief it would magically allow them to grow their market influence, but actually it isn’t. The Simkhai / Blueberry relationship is far more symbiotic and engaging, and for two reasons.

The first is that as well as being presented to invited guests, the Second Life Simkhai collection will be the subject of a series of catwalk shows open to Second Life residents on Thursday February 17th / Friday February 18th, with shows set hourly from 13:00 through 16:00 (inclusive – see the Destination Guide link at the end of this article). Not only will these serve to show the designs to the Second Life community, they will also – according to Vogue’s Maghan McDowell –  allow SL users to purchase them at around L$1,000 per item.

So, if you missed out on today’s fashion shows, you can try to catch one tomorrow! I do have my eye on that haute couture dress illustrated in the Vogue Business article above! According to a press release posted to Reddit:

NFT sale from first metaverse fashion show launched from nftgamef

You can see the NFTs listed for sale here (scroll down the page a bit).

Yes, those are prices in U.S. dollars!

These NFTs, which cost anywhere from US$200-600 apiece, confer the following “benefits” (please note that this does not apply to sales within Second Life; as mentioned earlier, SL versions of these virtual garments, made in association with well-known womenswear designer Blueberry, will cost about L$1,000 each, a relative bargain!):

  • Limited edition Metaverse Fashion Week merchandise/apparel
  • Ability to wear Jonathan Simkhai NFT wearables as your avatar in the metaverse
  • Access to future Everyrealm digital wearables activations
  • Whitelisting for future digital wearables drops

Keep in mind that your ability to actually wear these garments on your avatar in the various NFT metaverse platforms is heavily dependent upon the ability of the various companies building those platforms to support it (I can guarantee you that the lovely Lucee dress shown above will not look nearly as sparkly on the current crop of Decentraland avatars, for example, let alone the voxel-based blockchain-based platforms like Cryptovoxels and The Sandbox!)

Therefore, many of these “benefits”, like so much for sale in this current season of blockchain, crypto, and NFT-based metaverse madness, are essentially the opportunity to flex and/or gloat to your friends…and to be first in line for the next line-up of expensive NFT-based avatar wearables!

However, I do have to hand it to Everyrealm. The company is certainly putting its money where its mouth is, and they are making a significant splash in the metaverse in a short time. I honestly cannot think of another firm which has its fingers in so many metaverse pies, all at the same time! More power to them.

As I often say on my blog, “a rising tide lifts all boats,” and Everyrealm is attracting big money (and attention) to the ever-evolving and mutating metaverse! Who knows, maybe Second Life will be home to a few more fashion shows linked to real-world, big-name designers? As we can see, there’s still a valuable place for older, non-NFT-based metaverse platforms like SL in this season of the NFT metaverse!

Metaverse Fashion Week 2022

2022 is promising to be a very interesting year, I predict! Stay tuned! I leave you with this (undated) writeup by David Murphy of MobileMarketing:

Metaverse Fashion Week, an event produced by Everyrealm and Blueberry Entertainment, took place yesterday, featuring Jonathan Simkhai as the debut designer. The event occurred day prior to the physical Jonathan Simkhai 2022 presentation at New York Fashion Week, making the real-world designer the first ever to show it’s Fall/Winter 2022 digital wearables collection ahead of their physical counterparts…

Guest took their seats in the larger-than-life bespoke set made specifically for the fashion event in the Second Life metaverse. The secluded location was inspired by natural elements such as rock, water, air, and fire. Simkhai’s latest collection was showcased on the avatar models during the 8-minute presentation. Simkhai debuted 11 designs from his Fall/Winter 2022 collection, which were digitally reimagined for the Metaverse.

The garments are converted from the real-world version into 3D digital models using design software and video gaming technology. The Second Life Marketplace has been selling digital clothing and accessories from Blueberry since 2011. Wearables and clothing are among the most popular types of commerce in Second Life’s $650m dollar virtual economy.

Founded by Mishi McDuff in 2012 as a solo creator on Second Life, Blueberry has sold more than 20m on digital wearables, amassed a library of more than 10,000 digital SKUs optimized for hundreds of design attributes, and scaled an engaged community of loyal customers. Blueberry is already live on multiple metaverse platforms, and is actively expanding its brand and community to other web 2.0 and 3.0 metaverses.

“I like to dream with my eyes”: The BBC Reports on Lessons the Metaverse Can Learn from Second Life

Have you joined the RyanSchultz.com Discord yet? You’re invited to be a part of the first ever cross-worlds discussion group, with over 600 people participating from every social VR platform and virtual world! We discuss, debate and argue about the ever-evolving metaverse and all the companies building it. You’re welcome to come join us! More details here.

Premium Second Life members can get a lovely Linden Home (image source: Linden Lab, via BBC)

I often say that 18-year-old Second Life has many lessons which newer metaverse platforms would be wise to learn from, and it would appear that the BBC agrees! Yesterday, in an article titled Zuckerberg’s metaverse: Lessons from Second Life, reporter Joe Tidy wrote:

It has been about 10 years since I first entered the virtual world of Second Life, arguably the internet’s first attempt at what every tech giant is now racing to build: the so-called metaverse.

The term metaverse was coined in the 1990s in a science-fiction novel, Snow Crash, where it served as a virtual-reality successor to the internet, where people live large portions of their lives in virtual environments.

Second Life peaked in the late 2000s with millions of users and hundreds of excitable headlines about people devoting hours of their daily lives to live digitally.

Since then, I assumed it had died a slow and quiet death. But how wrong I was.

One of the people he met in-world was Rei:

Our avatars bumped into each other after teleporting to a seaside world modelled on a strange rundown 1960s Scottish fishing village. He told me he had been spending time in Second Life for about four months after “getting curious about all this metaverse stuff”.

Rei is not a fan of Zuckerberg’s vision of the metaverse. “They’ll want to control everything. But I think the people should be in charge and it should be fully open,” he told me.

The entire article is well worth a read, especially if you are not familiar with Second Life and its history. SL’s massive marketplace where avatars can buy and sell user-generated content are just one of the reasons why Second Life is still so popular (in fact, many newer social VR platforms such as VRChat and Rec Room are hard at work at building their own in-world marketplaces!).

There are indeed many lessons which the newer social VR platforms (such as Meta’s Horizon Worlds, still in closed beta testing two years after it was first announced) can learn from the both the successes and the scandals of Second Life’s 18-year history. Joe ends his article:

Back in Second Life, I asked Rei one last question before I logged off: why does he keep coming back?

He answered: “I like to dream with my eyes”.

So, I’d like to take this opportunity to invite you—if you have never done so, or even if you haven’t been in SL for a long time—to come pay us a visit! You might be surprised by what you find. Second Life still is a vibrant place, 18 years after its founding, with tens of thousands of concurrent users in the virtual world at any time of the day or night.

The Second Life website (just click on “Sign Up” in the upper right-hand corner to get started)

Thanks to Neobela for the heads up!