A complete guide to top metaverse companies and investment strategies. This in-depth analysis covers eight major players worldwide—including XANA, GREE, and Cluster. Explore a range of investment approaches, from equities, NFTs, and cryptocurrencies, to strategies suited for both beginner and intermediate investors in metaverse-related firms. Compare the latest investment opportunities in the Web3 era with clarity and precision.
What Is the Metaverse? Its Essence and Three Key Features
The metaverse is an innovative virtual environment and service platform, distinct from the physical world, where users can engage in a wide variety of activities and experiences. By controlling avatars, users can communicate with others and enjoy activities such as gaming and shopping.
Leveraging advanced technologies like VR (Virtual Reality) and AR (Augmented Reality), the metaverse offers an immersive experience that goes beyond traditional digital interactions. Its applications are not limited to entertainment and gaming, but extend to education, business, art, healthcare, and other sectors. While the market is still developing, long-term projections estimate its growth into a $1 trillion industry, positioning it at the heart of the next-generation digital economy.
Current examples of metaverse adoption include:
- Entertainment industry: Live performances in virtual concert halls and immersive gaming experiences
- Education sector: Remote learning on virtual campuses and practical simulation-based training
- Healthcare sector: Advanced surgical support systems and effective rehabilitation programs using virtual reality
- Real estate sector: Virtual property tours and real estate transactions within metaverse spaces
- Financial sector: New trading platforms and investment opportunities in virtual environments
As more industries adopt metaverse technologies, it has the potential to fundamentally transform business models and societal structures.
Formation of New Economic Zones Centered on the Metaverse
A key feature of the metaverse is the emergence of unique economic zones built around it. In these metaverse economies, users can hold their own currencies and assets, purchase goods, and access various services within virtual spaces. Particularly noteworthy are the active trades of digital real estate, items, and avatars inside the metaverse.
Most digital asset transactions are expected to utilize NFT (Non-Fungible Token) technology. NFTs serve as unique digital items and are anticipated to accelerate the growth of large-scale metaverse economies. Additionally, advertising and marketing in the metaverse are attracting attention as promising new business opportunities, and may become crucial revenue sources that complement existing models.
Immersive Experiences Powered by AR and VR Technologies
Another major feature of the metaverse is its ability to deliver more realistic, immersive experiences through AR (Augmented Reality) and VR (Virtual Reality). For example, "virtual travel" allows users to experience global destinations without leaving home, and "metaverse live" events bring fans together worldwide for artist performances, overcoming physical distance.
Fortnite, a leading gaming platform, has already hosted large-scale live music events featuring famous artists, drawing millions of participants. Success stories like these demonstrate new business opportunities enabled by AR and VR in the metaverse and are expected to accelerate its adoption going forward.
Web3-Era Social Networking Led by Generation Z
The metaverse is gaining traction as an innovative form of social networking, especially among Generation Z. In the metaverse, communication extends beyond text and voice chat to include avatar emotes and gestures, enabling richer and more expressive interaction. As a result, the metaverse has already become a vital community space for Gen Z.
Generation Z—the "digital native" cohort—has grown up with social media and games, and is generally comfortable with communication in virtual environments. This has fostered a thriving metaverse culture among Gen Z, which is expected to evolve into a cross-generational communication platform in the future.
Top 5 Metaverse-Related Companies in Japan
Here are five major Japanese companies actively pursuing metaverse business. Each enterprise leverages its unique strengths to drive market development and innovation.
XANA: Web3.0 Metaverse Pioneer
XANA is an advanced Web3.0 metaverse platform developed by NOBORDERZ and operated by its dedicated company. XANA enables users without technical expertise to easily create metaverse spaces, avatars, and games. NFT technology secures digital item ownership, allowing free trading and diverse monetization for creators.
As Japan's first full-scale Web3.0 metaverse company, XANA has attracted significant attention through collaborations with leading corporations and influencers both in Japan and abroad. Yuuji Mizoguchi, CEO of XANA JAPAN and president of BACKSTAGE Inc., is driving digital transformation in entertainment, with strong expansion anticipated in the field.
GREE: Mobile Metaverse Pioneer
GREE is making a full-scale entry into the metaverse through its development and operation of the smartphone app "REALITY." REALITY allows anyone to become an avatar and enjoy live streaming and games without revealing their face, all from their smartphone. Global downloads have surpassed 10 million, with especially rapid growth among younger users.
GREE has announced plans to invest over ¥10 billion over several years, positioning REALITY as its third major business pillar. With the vision "Live as your ideal self," REALITY has established itself domestically and is now targeting international expansion as a global metaverse platform.
Cluster: Japan’s Largest Metaverse Platform
Cluster has established itself as Japan’s largest metaverse platform. Accessible via VR devices, smartphones, and PCs, users can join events such as music concerts and business conferences, and enjoy persistent worlds and games. Users can also create and upload original avatars and worlds.
Founded in 2015, Cluster released its alpha version in 2016 and official version in 2017. It has grown steadily, exceeding 1 million downloads and 20 million cumulative participants, making it the biggest metaverse platform in Japan. Cluster is recognized for hosting large events like Virtual Shibuya and collaborating with global brands such as Pokémon and Disney.
NEIGHBOR: Fortnite Metaverse Creation Specialist
NEIGHBOR is a pioneering Japanese metaverse company focused on developing experiences within Fortnite. As Japan’s first creative studio capable of large-scale Fortnite development, NEIGHBOR partners with top creators to build custom virtual spaces for corporate clients.
The company leverages Fortnite’s creative features to create city-scale metaverse environments and original games for businesses. Major accomplishments include the "Rocket Ninja" character series with over 3 million plays, the "AI Lokesta-kun" metaverse attracting over 1 million visitors globally, and a haunted house for Netflix anime promotions with 1.2 million attendees—earning strong support from Generation Z.
Square Enix: Blockchain Gaming Pioneer
Square Enix is one of the few large gaming companies actively investing in and developing metaverse businesses. Its "Symbiogenesis" project, which combines 10,000 original NFT artworks with gaming functionality, has drawn attention as its first full-scale blockchain game in Japan and overseas.
Square Enix has also formed a strategic partnership with the Ethereum-based metaverse game The Sandbox, increasing its investments in the sector. Combining decades of game development expertise with metaverse technology, Square Enix is poised for groundbreaking collaboration projects in the near future.
Top 3 Global Metaverse Companies
This section introduces leading global companies driving the metaverse market, each with a unique approach to industry growth.
Fortnite: Next-Generation Metaverse Platform
Fortnite, launched by Epic Games in 2017, is a global online gaming platform with over 400 million users. Especially among Generation Z, Fortnite serves as a central hub for everyday communication, not just gaming. The platform offers Battle Royale, Creative Mode, and Save the World, catering to diverse user needs.
A major turning point came with the "GDC 2023 State of Unreal" event on March 22, 2023, when Epic Games announced "Unreal Editor for Fortnite" and the "Creator Economy 2.0 Vision." This introduced a new revenue-sharing program for creators, enabling individuals to develop and monetize custom games and content within Fortnite. This initiative positions Fortnite to evolve into a next-generation metaverse platform.
Roblox: User-Generated Content Pioneer
Roblox is an online gaming platform and game creation service where users can build and share games, or play thousands created by others. Developed by David Baszucki in 2004 and launched in 2006, Roblox is renowned for its democratized content creation ecosystem.
Roblox's key differentiator is "ROBLOX Studio," a tool allowing users to create games and virtual spaces without programming experience. This has led to an enormous volume of user-generated content worldwide.
Looking forward, CEO David Baszucki has indicated the potential for NFT integration on Roblox in a CNBC interview, describing seamless movement of digital objects and NFTs across platforms as "a kind of dream." This points to a future where Roblox could establish a robust metaverse economy powered by NFTs and crypto assets.
Meta, the US tech leader behind Facebook and Instagram, boasts billions of users worldwide. By leveraging its massive user base, Meta is well-positioned to build large-scale metaverse environments and global social connections.
Meta has designated metaverse development as a top strategic priority, investing heavily and consistently in the sector. It owns the Oculus VR headset series, offering premium virtual experiences, and has launched "Horizon Workrooms" for business communication and remote meetings. Through these investments and innovations, Meta aims to establish global leadership in the metaverse space.
How to Invest in Metaverse Companies: Strategies and Methods
Investors can access the growth potential of the metaverse by purchasing shares of metaverse-related companies, ETFs (exchange-traded funds), or mutual funds. The US stock market features many publicly traded companies developing or planning metaverse businesses, including tech giants, platform operators, VR/AR manufacturers, and related crypto exchanges.
Although the metaverse market is still emerging and short-term growth is uncertain, medium- and long-term prospects point to significant expansion over the next several years to a decade. Investing in metaverse companies can offer substantial returns as the market develops; consider making actual investments as part of a diversified portfolio based on your risk tolerance.
Diverse Investment Approaches in the Metaverse
Beyond purchasing metaverse stocks, there are several ways to invest in the sector.
Investing in Metaverse-Related Cryptocurrencies
Direct investment in metaverse-focused cryptocurrencies is another effective method. Leading tokens include AXS (Axie Infinity), MANA (Decentraland), and SAND (The Sandbox)—each serving as native currencies for their respective ecosystems. Their value may appreciate alongside platform growth.
Direct Investment in Metaverse Assets
Investors can also directly acquire NFT items or virtual real estate within the metaverse. This approach involves purchasing land or items, expecting appreciation or rental income. However, these investments are relatively new and volatile, so thorough research and risk management are essential. Assess each metaverse platform’s features, prospects, and user base before investing.
FAQ
What Is the Metaverse? Definition and Main Features
The metaverse is a virtual space that interacts with the real world. Key features include integration of virtual and physical environments, real-time events, and immersive digital experiences. Users can engage in social, transactional, and creative activities through avatars.
Who Are the Leading Metaverse Companies Globally and in Japan? What Are Their Strengths?
Meta, Microsoft, and Niantic are leaders worldwide. Meta focuses on virtual worlds and social experiences, Microsoft specializes in AR/VR integration, and Niantic excels in location-based AR. In Japan, Alibaba, Tencent, and NetEase are aggressively expanding, competing in VR/AR, blockchain, and cloud gaming.
How Can You Invest in Metaverse Companies? What Methods and Channels Are Available?
The most common ways to invest in metaverse companies are purchasing project NFTs or tokens. Investors can buy or trade assets on NFT marketplaces, acquire land or items within metaverse platforms, or purchase native tokens of related projects.
What Risks Are Involved in Investing in Metaverse Companies? What Should You Watch For?
The metaverse market is in its early stages, with key risks including technological immaturity, regulatory uncertainty, and market volatility. Short-term investments tend to be speculative with limited impact on performance. For long-term growth, focus on companies with strong technology and competitive advantages.
Meta acquired Oculus to enhance its XR ecosystem and launched the Horizon social platform. Tencent has invested in Roblox and Epic Games, introducing the "full-real Internet" concept. ByteDance acquired Pico VR, and all three are building comprehensive metaverse ecosystems through hardware, software, and content.
What Metaverse-Related Stocks and Funds Exist, and How Should You Choose Investment Products?
Specialized funds like the Roundhill Metaverse ETF (METV) are major options. Allocations include gaming platform companies (about 20%), computer component suppliers (about 19%), and cloud computing firms (about 16%). The metaverse market is expected to more than double by 2025. When selecting investments, analyze growth prospects and valuations carefully and prioritize diversification.
What Is the Outlook for Metaverse Development? What Are the Future Market Size Projections?
The metaverse market is forecasted to surpass $800 billion by 2028. Advanced sectors like VR/AR and AIGC will drive growth, with applications expanding in industrial simulation and digital city development. Global expansion and innovation are the main trends.
How Should Individual Investors Evaluate the Investment Value of Metaverse Companies?
Assess each company's position in the industry ecosystem. Focus on those with leadership in core technologies, platform gateways, interactive hardware, tools, and industry applications. Review implementation in high-growth areas such as retail, manufacturing, and education.
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.
