JPMorgan Predicts $131B Valuation for China’s Metaverse Revenue

The China online gaming market seems to be looking good with the Metaverse as it looks at tripling its revenue from $44 billion to about $131 billion.

According to research by analysts from the investment bank JPMorgan, this significant transition will have an effect on gaming, advertising, and e-commerce. 

Additionally, JPMorgan predicted that the total addressable market (TAM) of the country’s virtual-related economy will hit $4 trillion. These analysts came up with an estimated value of $27 billion TAM for business services and software in the metaverse-world in China.

Interestingly, the metaverse is an online digital world that combines the creativity of virtual reality (VR), augmented reality (AR), artificial intelligence (AI), and the internet to create meaningful interactive experiences for users.

It is a virtual world where real people, locations, and objects are represented as avatars or playable characters. Their representation comes in the form of non-fungible tokens (NFTs) most times. 

With the advent of this new technology, users can buy, sell, interact and design things virtually across different platforms with a sense of ownership. They could get educated and entertained on the metaverse too.

Metaverse Offers Interactive User Experience

The use of VR, AR, and AI makes online gaming an integral part of the metaverse, especially the crypto metaverse. For now, the metaverse is still at its version 1.0, a point where all AR and VR scenes are considered the metaverse of the current era. In China, this has gained major prominence and in turn, rolled in an enormous revenue into the economy. 

Daniel Chen, the lead analyst in this research said that “the digital world could “help internet companies tap into business services and potentially double the internet time spent.”

These financial predictions come from an analysis of the user experience that the tech offers along with the volume of users who have embraced it in China. The metaverse improved user experience across several internet business models is likely to boost user penetration, hence increasing the average revenue per user (ARPU).

Generally speaking, the metaverse has made a significant difference in online gaming. In August alone, Web3.0 games and metaverse projects secured $748 million across the board. Blockchain-based games are even becoming more popular than conventional games.