According to experts, China’s two biggest game companies, Tencent and NetEase, will take the lead in the global metaverse race.
When transforming into a three-dimensional world, RPG, internet platforms can also profit from virtual events, marketing campaigns. Tencent Holdings and NetEase are the two frontrunners in the race to the metaverse, as their large user base and early investments in related infrastructure pay off well for new businesses stemming from web transformed into a three-dimensional online world.
China’s top internet and game publishers are on a list of 35 global stock picks identified in the metaverse, according to a guide to the next generation internet report released this week by Credit Suisse.
While Chinese tech companies are still catching up to the metaverse compared to their US counterparts, Tencent and NetEase have made some headway in hosting virtual events and activities.
These avatar-based concerts and conferences, held on virtual event platforms like NetEase’s Yaotai, even feature the music streaming unit’s Hong Kong stock exchange listing. music NetEase Cloud Village last November. Tencent Music held its own music festival called Tmeland, where participants, all with avatars, interacted with each other.
Credit Suisse analysts Kenneth Fong and Ivy Ji wrote in the report: “Metaverse is currently still at a very young stage in China due to tight regulations on cryptocurrency exchanges.”
Chinese companies like Tencent and NetEase are investing more and more in metaverse games. Tencent has launched LuoBuLeSi, the Chinese version of Roblox, an online game platform that allows users to use virtual avatars and play games built by other users.
NetEase, China’s second-largest online game publisher after Tencent, has also invested in the metaverse social network IMVU and some sandbox games like Minecraft. China is the world’s largest online game market with 666 million gamers.
The vast social media user bases of these internet platforms can also help them exploit other opportunities in the metaverse.
The combined average monthly user for social media super apps Weixin and WeChat reached 1.26 billion as of September 2021. This will open up virtual branding and marketing campaigns for Tencent via the metaverse, Credit Suisse analyst Soyun Shin said at a press conference.