Last month we noted that Samsung Electronics (005930.KS) has established a new and updated presence in the Metaverse during CES called “My House” where potential customers could create (sort of) their own digital home for “millennials and zoomers”, complete with avatars they designed, and stocked with a wide variety of Samsung products that they can interact with.  This new interactive site, which is an upgrade to the “Galaxy House Experience” that Samsung introduced last year, where visitors could interact with some of the company’s smartphones and connect with members of the K-Pop group BTS, gives users the ability to customize their ‘house’ through the same Zepeto (035420.KS) platform.  Samsung has indicated that the new iteration has reached a cumulative total of over 4m visitors since its release on January 5.

The “My House” experience starts with the ‘front yard’ where visitors can speak to other visitors or walk to other houses that have been customized (colors, finishes, etc.), albeit with the same layout, where you can walk through the front door and enter the living room, kitchen, laundry room, office, bedroom, or bathroom.  Each room has its requisite Samsung appliances that you can pick up, turn on, or see or feel the output, or even play games on the living room TV or office monitor, but surprisingly there is little information about the products, and most offer just short loops of images on the screens or allow your avatar to touch random keys on the game keyboard while the game loops on the TV.  There are choices that can be made, such as selecting a particular type of Samsung TV to watch, but it is a far cry from visiting a real Samsung booth at CES (pre-COVID) where product information was first and foremost and booth ‘helpers’ were willing to show you how anything worked and point you toward senior staff if you looked like you had corporate buying power.
As the Zepeto platform is available for smartphones, it is visualized in 2D[1] and is essentially a relatively simple walk-through with a few interactive points, much like a simple game or social site, so calling this the Metaverse is like calling a house cat a ‘wild carnivore’ because it eats meat based processed canned cat food.  So we place little credence in this Samsung attempt to step into the bold new world of the Metaverse.  If one looks at the evolution of selling on the internet, one of the most innovative advertising tools was the ability to spin an image in any direction to see parts of the item that were not visible in the static image, and most product channels still do not have that capability, with most using multiple clickable image views, so a cartoonish avatar that can hold a descriptionless vacuum cleaner while listening to a radio does little other than act as a curiosity that Samsung marketing feels obligated to present.  If Samsun were willing to offer up the real data on site visitors, such as age, lead generation, sale completions, and return visits, it might offer some insight into the characteristics needed to actually sell items in the Metaverse, as opposed to just promoting the idea that the company is a hip and happening Metaverse participant.


[1] We thank The Verge for providing My House screen shots.

There are lots of folk who believe that using NFTs to buy art is a way to develop a valuable asset portfolio and just as many who believe it’s a scam, but just a little understanding of the process and some nuances makes for a better decision making process when trying to evaluate or understand the world of NFT art.  Before you become the new Picasso of the digital world, you will need a digital wallet, a software or service based application that stores transactional information and potentially identification that allows the user to buy or sell both physical and digital assets.  Such software can reside on a smartphone or any digital device including a server, and could be thought of as a either a ‘bank account’ (with no bank attached) or a retail account (with no retailer attached).  “Hot” wallets, which are on-line, are used to make quick transactions, while “Cold” wallets are more for storing assets and are not connected to the internet and are therefore more secure.
Once you have a wallet, you need to put something in it in order to pay “Gas”, the fees that are charged for listing your artwork and for executing some of the transactions.  In order to fund those fees you will likely need to put Ethereum, a common cryptocurrency in your wallet.  The Ethereum blockchain keeps track of all Ethereum transactions in a manner that does not put any specific information on a particular server or device, but distributes parts of the transaction data and history across hundreds or thousands of servers.  You will need to use either other digital currency or ‘real’ currency from your bank account to purchase Ethereum for your wallet, usually through an intermediary like Coinbase (COIN), and Ethereum itself changes in value as do other currencies, so the value of your wallet will vary even before you become an artist.
Next you need to connect to an NFT platform, essentially a place where your art is available to others to look at and purchase.  When you “mint” your art on such a site, like Opensea (pvt), they will charge “Gas” of between 2% and 3% of the transaction value.  As part of the process your artwork must be verified (POW – Proof-of-Work) that entails much blockchain processing but will (hopefully) verify you as the rightful creator and owner of the digital asset.  Once uploaded and verified you can decide if you just want to leave the item open, sort of an Ebay (EBAY) “Buy-it-Now” or create an auction, and then it is up to the art world to decide whether there is value in your work. 
Of course you will have to ‘advertise’ in order to get noticed and that means lots of time on social media creating an image of you as the latest and greatest digital image creator, and while you are publicizing yourself you also have to deal with the rapid changes in the value of cryptocurrencies that could influence the value of your artwork, but such is life in the digital art (or music) world and participants either accept the heavy responsibilities of being a digital artist or go back to the 9 to 5.  We won’t go into the ethics or legalities of the NFT art world or make a value judgement on those who profess to have made millions buying and selling digital art, but we reinforce one thing and that is to pay attention to “Gas” as the multitude of fees involved in the process can erode profits for sellers and raise costs for buyers, while fee collectors smile after every transaction.

​Last week we noted that the use of realistic avatars or ‘virtual personalities’ was becoming more widespread, citing China’s Baidu (BIDU) push into the category with their Xiling platform and services offering, expanding past basic avatar creation and into the realm of virtual hosts, virtual idols, and brand spokespersons.  It seems that the trend is continuing as Taiwan’s HTC (2498.TT subsidiary Vive Studios (pvt), a well-known headset and content provider (Viveport), is launching a ‘virtual human’ business and has been recruiting AI experts, along with a former Chief Technology Officer from Boeing (BA), a company with considerable simulator experience.  Vive will base the development on their existing “Bit” platform that was developed in-house, but will extend it  to included “Volt”, proprietary VR animation IP that will allow for the development of realistic ‘virtual humans’.
Vive is targeting 10 to 15 characters, while keeping the development process relatively short and uncomplicated, and an investment in Vive from South Korea’s SK Telecom (SKM) last year is targeting such Metaverse related development, and the support of the company’s Vive Sync, a virtual meeting and collaboration space, an NFT art gallery, and a series of VR ‘experiences’, including VR based medical training, conservation, and other Metaverse worlds that highlight the company’s creation projects, hardware, or ability to operate with other hardware platforms.  With Vive VR headsets among the top rated headsets, usually in competition with Oculus (Facebook (FB)), the company’s virtual human project will be closely watched, although we expect it will be a bit more oriented toward virtual media than some that are being developed or used for more standard TV content, as noted in last week’s note.

​The Chinese government has taken a more aggressive stance on trademark requests containing ‘Yuán yǔzhòu’, loosely translated in Mandarin to ‘Metaverse’.  The National Intellectual Property Administration has been denying registration requests from a number of large and small Chinese companies that have included the words to prevent trademark ‘squatting’, where ‘first-to-file’ country trademark systems allow early filers the trademark use, rather than those who have a legitimate claim.  The Chinese government has seen a rush toward registrations trademarking Metaverse inclusive names as the hype around the Metaverse in China continues and is looking to promote only those that have a some technical capability to develop the technology, particularly AI and blockchain, although even those averring their commitment to the Metaverse, such as Netease (NTES), Alibaba (BABA), and Tencent (700.HK), have been rejected or are still under review, with trademark names such as ‘Ali Metaverse’ or ‘Metaapp’.

While we are on the subject of the Metaverse, the South Korean government has come up with a roadmap for establishing the country as having the 5th largest global Metaverse market share by 2026.  The government announced the “Metaverse New Industry Leading Strategy” which details 24 ‘tasks’ that it sees necessary for the development of the Metaverse and South Korea’s place globally, including the training of 40,000 Metaverse experts, the creation of a Metaverse Academy (180 students to start), two Graduate Schools, and the ‘fostering’ of 220 specialized companies to fulfill the task list, which the government has divided into 10 categories below (not our translation).
The Metaverse hub, currently located in Pangyo Techno Valley, South Korea’s answer to Silicon Valley, will expand to across the country, along with the creation of a number of demonstration facilities and all will operate under mandated “Metaverse Ethical Principals”, a self-regulatory norm with guidelines that prevent damage to consumers, sexual exploitation, disseminating harmful information, checking information on digital goods, and guaranteeing the consumer’s right to withdraw subscriptions to services.
While we are certainly mindful as to how focused the South Korean technology mindset is, we expect things might not be as easy as laid out below.  Since much of the Metaverse depends on the hardware needed to place the user in a virtual world, we expect much of the early development will still be oriented to a 2D world view.  That said, the US government is still trying to figure out what it is that Facebook (FB) does and how their algorithms affect mental health so we have to give credit to the South Korean government for trying to plan ahead while our lawmakers are still stuck on whether we should negotiate drug prices under Medicare…

1. Metaverse Life                                        Implement major urban centers as “Digital Mirror Worlds”; Connect virtual and real experiences and realize everyday life.
2. Metaverse Tourism                               Tourist attractions, museums; Implementation of ritual purchase activities & travel or watch local festivals vividly.
3. Metaverse Culture & Art                      Ultra-realistic virtual performances, competitions and large audiences; Artistic activities and works, such as 2 way communication.
4. Metaverse Training                               Immersive training, multilateral engagement discussions in virtual classrooms; Help users create, trade, and leverage educational content.
5. Metaverse Medical                                Digital therapeutics using the Metaverse; Non-face group; Addiction treatment, rehabilitation guidance.
6. Metaverse Media                                   Avatars that synchronize with reality, such as movement, expressions, etc; Ongoing virtual broadcasting and realistic OTT services.
7. Metaverse Creation                Easy and comfortable Metaverse service for ordinary users; Ownership of the results of development.  Implement a virtual world where the reward system works.
8. Metaverse Manufacturing                  Production manufacturing process equipment virtualization and work efficiency; Optimize, increase productivity, improve quality, and manage safety.
9. Metaverse Office                                   Online office environment access, video conferencing, data sharing; Provide a realistic office environment where you can perform your work.
10. Metaverse Government                              Government and local administration and complaint services; education; 

As the Metaverse (or at least the word ‘Metaverse’) worms its way into corporate speak, we try to separate the corporate desire to seem hip from what might have some basis in reality, and that is not an easy task when the word ‘Metaverse’ remains above popular search requests on Google (GOOG) since December.  Some companies seem to have quickly taken to the Metaverse, at least at the public level, and the potential (retailing, entertainment, training, etc.) is a bit more obvious for some, others continue to stretch for ways to include the concept in their corporate branding.  According to a recent Harvard Business Review article written by Ernst & Young, “…brands focusing on younger demographics, for example, probably don’t have the luxury of sitting out the Metaverse for long” increasing the fear that CMOs have of being ‘left out of something’ even though they might not quite have an understanding of what they are being left out of.  The inclusion of such phrases like ‘spectacular potential’, ‘stickier’, and ‘seamless transition’ make the concept seem like it is an absolute necessity for marketing people, regardless of the state of the concept or the ‘reality’ of what it might bring to the corporate image.
We call to mind a media platform known as ‘Second Life’, created by Liden Lab (pvt) back in 1999.  The platform was best known as a place where users could post content to a 3D world, and by 2013 had ~1m users or ‘residents’ as they are called by the company.  The site is game-like but is more of a social and commerce platform, using its own cryptocurrency that allows users to purchase property (virtual), shop, or just participate in group activities.  While the site is still said to have 800k to 900k users, growth has been non-existent for some years and has never developed into the once-expected ‘virtual life’ we all are told we desire, perhaps due to the monthly fee that must be paid to maintain residency, but adding 3D to such 2D content is really what Metaverse proselytizers hope will make it a global sensation that will change the way in which we live and experience life.

But such trivialities do not seem to stop companies from pushing ahead with programs to develop their own Metaverses, or at least are talking about doing so.  Retailers, particularly high-end retailers, have certainly latched on to the concept with Gucci’s (KER.FP) ‘Vault’, Dolce & Gabbana’s (pvt) NFT Collection, and Ralph Lauren’s (RL) partnership with Zepeto (035420.KS), along with even more logical Metaverse candidates, dating apps Bumble (BMBL) and Tinder (MTCH).  Even more ready to enter the Metaverse are Warner Music (WMG) and Sony Music (SNE), who are already offering virtual concerts that allow users to choose which songs the artist plays (for them) and have made acquisitions that open the door to ways in which they can sell music or music merchandise using NFTs.  But when it really comes down to who might benefit the most from adopting the Metaverse as a platform, company’s like Disney (DIS) are near the top of the list.
At a low level there is “Disney Magic Moments”, Disney content for “My Disney Experience”, which is just another way the company tries to maintain connection with their guests using digital content showing everything from behind-the-scenes looks behind the gates to how to master the recipe of favorite Disney character, but that isn’t really the Metaverse as we see it, just regular marketing.  However the Head of Digital & Technology for Disney Parks has been quite vocal on the Metaverse, and while some of the concepts seem to be only minor changes to existing 2D internet based content, Disney has gone much further.
The company has recently been granted a patent for a “Virtual World Simulator”, a system that tracks physical park visitors through their smartphones and fixed cameras, and is able to project 3D virtual images, such as characters, animals, or inanimate objects onto real-world venues without the use of AR or VR glasses.  Under this system, some of the virtual simulations would be automated, perhaps during a ride or other venue, but in other cases the system can be controlled by a human that can observe the situation and project a virtual character on an ad hoc basis.  Taken to the extreme, one might be walking toward the “Expedition Everest” ride when a Sherpa Guide is suddenly walking along side you and describing how cold it is up near the top and how thin the air is. 

​Disney goes further with the Metaverse, waxing poetically, stating “We deployed several digital tools to help our cast members transform the transactional elements of their work into meaningful interactions with our guests. New capabilities like AR-driven training helped with that transformation.  As we look to the future, connected park experiences that transcend the physical and digital barrier and unlock new layers of storytelling are a very exciting focus of ours. We call this concept the “theme park metaverse” – this is where physical and digital worlds converge, with wearables, smartphones and digital access points immersing the guests in the Metaverse experiences.  They are unique to you, but are also social and connected. They are constantly changing so there is always something new to discover.” 
Even big-box giant Wal-Mart (WMT) does not want to be left out of the Metaverse, going as far as reviving a four-year old product introduction video showing how virtual shopping might be envisioned, but Wal-Mart has also been at work filing Trademark applications for goods and services as “Provision of an online marketplace for buyers and sellers of downloadable digital goods authenticated by non-fungible tokens (NFTs)” and “Providing an interactive website and computer application software for virtual reality game services”, etc.  While this is just a trademark, it does show that even Wal-Mart is looking to create its own crypto-currency and one day be selling you heavily discounted digital art work or virtual ‘wine-in-a-box’ for your virtual diner party.
Of course much of what Disney says is corporate speak and the development of a Virtual World Simulator is likely relatively far off, so for the time being we will still have to settle for AR/VR headsets for our Metaverse experiences, but at a corporate level the Metaverse is fodder for endless marketing meetings, considerable M&A, and innumerable questions from potential investors.  With Second Life in mind, while we try to sense the Metaverse roadmap nuances that seem to change daily, we are careful not to overestimate its potential, both in the near-term and the long-term, and temper any of the more flowery rhetoric about this ‘new world’ with some old-world pragmatism.

RBK is Russia’s first (and only) 24 hour business news network, broadcasting a variety of Russian economic, political, and business programs to over 100m viewers (coverage) in Russia, Georgia, and a number of Baltic countries, with an average monthly audience of ~17m.  Little would seem unusual about the channel, with breaking news, thematic programs, and updates on global and local markets, but all is not right with the host of the Markets and Investor Calendar show that appears regularly, as Elena, the host does not exist in the real world.
Elena (see below) was designed by Sber Devices (pvt), a subsidiary of the Russian State-owned Sberbank (SBER.MCX) , who created the avatar using its Visper development platform that allows users to create virtual avatars from the simple to the life-like Elena.  Nikkei Innovation Labs (pvt), the R&D arm of Japanese media giant Nikkei (pvt), owner of Nikkei Asia and the Financial Times, also has such a platform that allows users to pick from a variety of ‘individuals’ that can be programmed to do or say whatever producers enter as copy, while mimicking the movements and lip-syncing of actual newscasters.  But it doesn’t stop there, as Nestle’s (NESN.SW) “Ruth, the Cookie Coach” (named after Ruth Wakefield, said to be the investor of the chocolate chip cookie) can guide you through baking the perfect chocolate chip cookie, responding to questions and adjusting movements when cooks want on-line help with baking questions.
Adding to the fray of companies involved in designing virtual personalities and avatars for on-line and off-line media is Chinese giant Baidu (BIDU), who recently released its own digital avatar platform Xiling, which can provide a variety of services covering virtual hosts, virtual idol, and brand spokesperson for almost any type of media.  There are many simplistic avatar platforms with names like “The Character Creator”, “MojiPop”, “Zmoji”, or “Boo”, most of which can create an avatar from a menu or a photograph, but the heavy lifting takes a combination of expertise in AI, voice recognition, 3D modeling, and a host of other software skills in order to make a successful ‘human clone’, which seems to be the objective of Baidu and others.
While questions arise over the use of virtual humans in the media needs to be considered using ethical guidelines, the Metaverse is likely to have no such necessity, as the internet has already taught us that fact checking and truthfulness are secondary to generating eyeballs, so we expect the race to create the ‘perfect virtual human’ to increase as the Metaverse removes most ethical shackles.  We expect to see more such virtual avatar generation development over the next year or two as the Metaverse tries to wriggle out of its chrysalis and into the real (?) world, but again we have been here before (3D) and the limitations of AR/VR must be watched carefully as technology that is not appealing to the general population tends to burn brightly, as it is now, and burn out quickly if it is not easily accessible.  Much of what we see now as the Metaverse is relatively simple and should be considered as black and white TV when compared to color TV that would represent the potential for such technology down the road, but getting there will take lots of money and lots of technology improvements, and above all time, so while we might become used to a virtual Wolf Blitzer on CNN, the Metaverse will still be under development for a while.

With 14 VR headsets from 8 brands being actually released in 2021, and the term “Metaverse” maintaining a near 100 (reference) search level since October, there has been considerable attention paid to the potential for the creation of VR and AR based hardware and content that can be used to focus attention on a 3 dimensional virtual ecosystem that can ‘enhance the user experience’ and allow anyone to visit an almost infinite number of worlds dreamed up by content creators and game designers.  There are big players like Facebook (FB), Steam (pvt) and Microsoft (MSFT) and literally hundreds of small players, with names like VRgineers (pvt) or XRspace (pvt), and while some CE companies have been a bit shy about eulogizing the absolute necessity of the Metaverse, many companies on the periphery of the CE space have somehow included the Metaverse in their public business plans, either by reference to some future development project or how the Metaverse will cause their existing business to expand.
There is one player who has been quiet about any direct plans for the Metaverse, and that is Apple (AAPL), whose entry into the space would be the hallmark of the Metaverse’s future with consumers.  Apple is not a technology leader in the sense of releasing product with the latest and most advanced features, but tends to start development early and continue such until they have been able to both justify a commercial product and have been able to find a way to put a differentiating Apple ‘stamp’ on the company’s foray into a new product market.
The less Apple says about its AR/VR technology development the more rumors circulate and Project T288 and other project names seem to ebb and flow like the Bay of Fundy tides, but other than making a number of AR/VR related acquisitions over the last few years, Apple has been quiet about its plans to enter what is now called the Metaverse, and while Apple’s acquisition focus might not have seemed as ‘Metaverse’ oriented back in the 2013’s and 2014’s, such acquisitions have all contributed to what are now AR/VR development projects. 
Much of the speculation about Apple’s entry into the AR/VR market is based on hardware.  We see speculation about processors, cameras, optics, displays, and ‘sleek designs’ almost daily, but what we believe is most important to Apple is the ecosystem that can and must be created around the hardware, as the company has done with many of its other products.  While the sales of AR/VR headsets will be important to Apple and to investors, what should be the driving force behind Apple’s VR/AR development projects is how that hardware will drive an Apple Store AR/VR segment.  Apple will make a profit on the hardware, and it will likely be a premium priced product relative to what is available at the time of release, but the real long-term game is not to have the best-selling AR/VR headset, but to have the highest secondary sales numbers for each headset sold and to sustain customer loyalty to build that base.
As with the iPhone, customer loyalty is developed by offering a better looking and better performing device, even if it is not entirely ‘bleeding edge, so while the eventual Apple AR/VR headset might not actually be as sophisticated as some that have been developed by competitive brands, Apple’s entry into the VR/AR market will signal another step function in the development of the industry that surrounds the Metaverse.  That said, we try to focus less on speculating on what hardware Apple might be developing or using and more on what users can do with the device.
Items such as development tools for an Apple VR OS, particularly porting existing VR games to such a platform will be essential, as will be Apple’s own Metaverse world development, which is a bit different than what has driven Apple store sales in the past.  Apple has relied on much outside development for applications and user content, and has built a large infrastructure around such content, however Apple has the option to create in-house VR/AR content, less like iTunes and more like “Appleverse” where Apple VR users can explore, and of course buy stuff.  This would be a bit more of a conflict with potential external Apple Metaverse content developers, but the ‘space’ in the Metaverse is so wide that Apple might stake a few claims and leave the door open to developers  to fill in areas of less interest.
For example, if you would be an Apple AR/VR headset user and subscriber, you could visit Apple’s iAvatar Metaverse, where you could wander down aisles of avatar parts, clothing, hairstyles and accoutrement, giving you the avatar ‘you always dreamed of’ for your own Metaverse site (that operates under a proprietary Apple Metaverse OS).  Perhaps Apple has designed the iAvatar Store itself, while offering ‘avatar-related products’ that have been developed by outside developers under the Apple Metaverse OS.  As an avatar developer, you would certainly want to tap into the potential Apple AR/VR base, just as developers do currently for IoS, and as, say a virtual furniture developer, you would want to find a good spot in Apple’s iFurniture store in the same way.  So there is far more to Apple’s entry into the VR/AR Metaverse space than just the hardware and speculation on how many 6DoF tracking cameras might be on such a device. This is interesting but rather limited in scope.  More to Apple’s long-term success in the Metaverse would be what Apple builds out alongside the release of an AR/VR headset as in the end having a fancy headset and not much to do with it is not going to generate the revenue that pays for a slew of acquisitions over the years.  Once again, content is king. “Can’t see the forest for the trees” – John Heywood

​Shiftall (pvt), a subsidiary of Panasonic (6752.JP), has moved (in theory) from an announced VR product to an almost released product, with the announcement that it will be showing its MegaNeX VR headset at CES.  The device is the second one we know of to be using Micro-OLED displays, in this case 1.3” displays produced by Kopin (KOPN).  The headset is among the lightest at ~250 gm (0.55 lbs) and carries 6DoF tracking.  The device is to sell for under $900, although no delivery date or retail pricing is available.  Along with the device are a few accessories, aside from the controllers, and while we usually spend little time on accessories, these are a bit unusual.
\The first is Haritorax, a $275 option, a simpler version of what is used for motion capture in filmmaking.  The ‘straps’ (for lack of a better word) are wrapped around various points on the body and transfer physical motion to a VR avatar through a number of popular VR headsets via Steam VR (pvt).  HaritoraX can run for ~10 hours on a self-contained battery, but to understand this accessory it is essential to watch at least a bit of the promo video, showing it at work.
https://youtu.be/zVg0NRJ8IDA
If that doesn’t weird you out enough, Shiftall has another accessory that goes even further, Mutalk.  Do your kids play video games using headphones with a microphone, and can you hear them yelling and screaming all the way at the other end of your house or apartment?  For us the answer is yes, and Mutalk is here to solve that problem.  The device, which looks like something from The Silence of the Lambs is a mask with a Bluetooth microphone that according to the company, “ensures your voice is broadcast into the Metaverse – not into your living space” and includes a detachable strap to muffle your speaking voice.  If you need even more realism you can strap on PebbleFeel, a device about the size of a remote control that sits on your back and allows the user to ‘embed temperature information into your Metaverse’, allowing the user to ‘feel’ the temperature in their (or other’s) Metaverse, with a range between 48⁰ and 107⁰.
All together, the well-dressed VR enthusiast could be wearing the VR headset, Hartorax, PebbleFeel, and Mutalk, along with the two controllers that are strapped to the user’s wrist (to prevent them from flying off and destroying articles of furniture or other users) to fully enjoy the immersive Metaverse experience.  There are few things we can think of that might scare young children than their Mom or Dad wearing such a get-up and gesticulating wildly while running in place in the den, especially if it ends up with a bout of motion sickness, broken furniture, or possible cuts and contusions.  Welcome to the Metaverse.
 

​While it is a bit early to start making predictions for VR in 2022, we expect at least a few more announcements concerning VR or AR headsets, and a number of demos or product releases at CES this week.  We believe there are at least 13 VR headsets that have already been announced but have yet to be released, so there is already ample ground for product releases, if brands are actually able to produce what they have previously stated.  While all but one of the VR headsets released in 2021 were based on small pitch LCD displays, we expect this year’s crop to be more varied, with at least two Micro-OLED based, and two Micro-LED based headsets, with the remainder being LCD, although we expect quantum dots to be added to at least one display.
We expect this year’[s crop of VR headsets to see a distinct improvement in resolution, likely double the resolution seen on average in those released last year, and while we don’t believe such resolutions (and other metrics) are enough to put VR into the category of a mass production CE product, it does go toward at least improving some of the issues that make VR difficult for a substantial part of the global population.  Prices, at least what we know so far, don’t seem to be changing, with the low end expected to be around $500 and the high end over $2,000, but we expect that the focus on the Metaverse will spur a bunch of new headsets that will try to capture a less ‘gamey’ and ‘social’ crowd, that would likely be a bit more cost conscious, although much of the market will still be dominated by well-known brands in 2022.  We do note that as resolution increases, the need for higher streaming data rates also increases, which should push headset developers to look toward 5G going forward.  No specific plans that we have heard yet, but much will depend on the availability of 5G chipsets designed for VR applications. 
One difference that we see this year is more uniformity on VR platforms.  In 2021, there were a number of headsets that were based on proprietary platforms, making them more dependent on relationships the platform had with developers and limiting content to a degree.  In 2022 it seems that most of the headsets will be based on the Steam VR (pvt) platform, opening smaller brands to the Steam VR catalog and giving consumers an easy and familiar way to buy or stream content, which goes toward making VR easier for rank and file Metaverse participants, who have less desire to work with headsets and more desire to buy stuff.  Removing any obstacles to ease-of-use will go toward opening VR up to a larger audience, but it is still our view that a real “Metaverse” is still years off, and the few Metaverse sites associated with companies at CES 2022 indicate that the level of content sophistication is still quite low.  While we might have focused more on some of the hardware limitations that surround VR, content is what will generate interest (other than money) and we are still unsure as to whether the gating factor is software or hardware (or both).   As with all technology there has to be an ecosystem to support it, and suppliers are just beginning to figure out what might be needed to make such an endeavor work.