Editorial: My Social VR/Virtual World Predictions for 2019

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Time to peer into that crystal ball and make some predictions!

First: Second Life is going to continue to coast along, baffling the mainstream news media and the general public with its vitality and longevity. It will continue to be a reliable cash cow for Linden Lab as they put a portion of that profit into building Sansar. And I also predict that the ability to change your first and last names in SL will prove very popular—and also very lucrative for Linden Lab! Remember, they’ve got seven years of pent-up demand for this feature. (I have a couple of avatars myself that I’d like to rename.)

Second: An unexpected but potentially ground-breaking development in OpenSim was the announcement of the release of a virtual reality OpenSim viewer to the open source community at the 2018 OpenSim Community Conference. There’s still lots of technical work left to do, but if they can successfully pull this off, it could mean a new era for OpenSim.

Third: I confidently predict that one or more blockchain-based virtual worlds are going to fold. Not Decentraland; there’s too much money tied up in that one to fail. But several cryptocurrency-based virtual worlds are starting to look like trainwrecks of epic proportions (and I’m looking at you, Staramaba Spaces/Materia.One). Somebody still needs to explain to me why people will want to pay to hang out with 3D-scanned replicas of Paris Hilton and Hulk Hogan. The business model makes absolutely no sense to me. Another one that I think is going to struggle in 2019 is Mark Space.

Fourth: I also predict that one or more adult/sex-oriented virtual worlds are going to fail (yes, I’m looking at you, Oasis). I’ve already gone into the reasons why even the best of them are going to find it hard to compete against the entrenched front-runner, Second Life.

Fifth: High Fidelity and Sansar will continue their friendly rivalry as both social VR platforms hold splashy events in the new year. (I’m really sorry I missed the recent preview of Queen Nefertari’s tomb in HiFi, but it looks as though there will be many other such opportunities in 2019.) And High Fidelity will continue to boast of new records in avatar capacity at well-attended events (it certainly helps that they’ve got those venture-capital dollars to spend, to offer monetary enticements for users to pile on for stress testing).

Sixth: the Oculus Quest VR headset will ignite the long-awaited boom in virtual reality that the analysts have been predicting for years. There; I’ve said it! And those social VR platforms which support Oculus Quest users will benefit.

Seventh: Linden Lab’s launch of Sansar on Steam will likely have only a modest impact on overall usage of the platform. I’m truly sorry to have to write this prediction, because I love Sansar, but we’ve got statistics we can check, and they are not looking terribly encouraging at the moment. And where is the “significant ad spend” that was promised at one of the in-world product meetups back in November? Now that they’ve pulled the trigger and launched on Steam, it’s time to promote the hell out of Sansar, using every means at Linden Lab’s disposal. Paying bounties to Twitch livestreamers is not enough.

And Facebook? If they thought 2018 was a bad year, I predict that we’re going to see even more scandals uncovered in 2019 by news organizations such as the New York Times. And more people (like me) will decide that they’ve had enough of being sold to other corporations and data-mined to within an inch of their lives, and jump ship. The public relations people at Facebook are going to face a lot of sleepless nights…

And, still on the same topic, we might yet see the launch of a new social VR platform backed by Facebook, after they decide to ditch the lamentable Facebook Spaces once and for all. Maybe it will be based on Oculus Rooms; maybe it will be something completely different. But despite my negative feelings about the social networking side of Facebook, they still have the hardware (Oculus), the money, and the reach to be a game-changer in social VR. (Just not with Facebook Spaces. At this point, they should just kill the project and start over. Any improvements will be like putting lipstick on a pig.)

Finally, I predict that the RyanSchultz.com blog will head off into new and rather unexpected directions (that is, if the past 12 months’ activity is any indication!). I never expected to cover blockchain-based virtual worlds, or Second Life freebies; they just kind of happened.  Expect more of the same in 2019, as various new topics catch my interest.

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My Predictions For The Next Two Years

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Photo by Wyron A on Unsplash

I’ve been hanging around virtual worlds of one kind or another for over a decade now. I’ve seen them come and go. Some were spectacular failures that provided lessons for other companies. Others just kind of meander along, not attracting very many users or ever becoming very big (like the multitude of OpenSim-based grids).

What usually happens in today’s hyper-competitive computer applications marketplace, is that one or two players in a particular market segment get big (e.g. Microsoft, MySpace, Facebook, and yes, in its own way, Second Life), and then continue to grow like a juggernaut, based on the network effect, while the smaller players in the marketplace fight each other over the leftovers. The ones who get big are usually, but not always, the early entrants into the field (Second Life is a prime example of that, although there were notable virtual worlds which were founded before it, like ActiveWorlds).

But social VR and virtual worlds are not a zero-sum game. Many consumers are frequent visitors to a number of different metaverse platforms, and many creators build and sell products in various virtual worlds. Right now, success in one VR-capable virtual world (e.g. VRChat) generates interest in other social VR spaces. As they say, “A rising tide lifts all boats”.

It’s still not clear where all this is going, but I’m willing to polish my crystal ball and make a few predictions of what will happen over the next two year period, from now until April 2020.

What I predict will happen, over the next two years, is that one of the Big Five computer companies:

  • Alphabet/Google
  • Amazon
  • Apple
  • Facebook/Oculus*
  • Microsoft

Is either going to launch their own social VR/virtual world/metaverse product, OR is going to buy one of the Big Four metaverse-building companies:

  • High Fidelity
  • Linden Lab (Second Life and Sansar)
  • Sine Wave Entertainment (Sinespace)
  • VRChat

(We’ve already seen this happen with Microsoft’s purchase of AltspaceVR.) We could also see a company buy out a virtual world, just to grab the programming talent, and then shut the world down completely (as Yahoo! did with the promising Cloud Party).

Now, there’s no guarantee that any of the Big Four companies WANT to be bought out by the Big Five. Perhaps instead of a buyout, a strategic partnership deal will be inked. But I bet you anything that it’s tempting for the bigger companies to buy their way into the evolving metaverse marketplace, rather than design something from scratch.

I also predict that a LOT of the new virtual world/social VR startups we see popping up are going to fail over the next two years. There’s a lot of virtual-reality-related (and especially blockchain-related) hype taking place, and some people are investing in startups that are risky. Some smaller companies have jumped into grand virtual-world-building projects without realizing the sheer magnitude of the work involved in creating a fully-featured, viable metaverse. I’m afraid that some investors are going to get burned.

I also predict that Sinespace and VRChat are going to pull ahead in terms of features, simply because they decided to build on top of the popular Unity game engine, and they can use all the cool Unity development tools that are popping up. By comparison, feature development on Sansar and High Fidelity will be slower, as they continue work in-house on their own engines.

And finally, I expect that Second Life’s 15th anniversary celebrations will entice some former users to dust off their old accounts and revisit the platform to see what’s new. It may well herald a renaissance for SL! At the very least, it will help stave off a slow decline in SL’s user concurrency figures.

*Sorry, but as I have said before, Facebook Spaces is not a palatable social VR/virtual world product. It can’t even come close to competing against what High Fidelity, Second Life, Sinespace and VRChat are currently doing. But I bet you anything that Facebook has other plans up their sleeve. They can still try to leverage off their 2-billion-plus Facebook network (not to mention 800 million Instagram users) to become a potential major disruptor in the evolving metaverse marketplace. I’m not counting them out yet!