JPMorgan Believes Metaverse Gaming Set to Boom In China

The metaverse and the market derived from this new industry trend have been objects of study by different institutions interested to join this newfound market. While it is a loosely structured and defined market, some think there are legit growth possibilities. Analysts from JPMorgan believe there is a huge possibility of an explosion in this sector in China, even with the current limitations imposed by crypto legislation in the country.

JPMorgan has chosen the top-notch industries that would gain an advantage from a boom in this sector in China. Among these are Tencent, a conglomerate that offers internet gaming and artificial intelligence services, and Netease, another gaming giant in the country. Other companies mentioned by JPMorgan are Agora and China Mobile.

The recommendations are based on criteria for the development of these companies regarding social media and gaming. About this, the report issued on September 7th states:

Development of mobile internet and AI in the past 5-10 years suggests that a company’s competitive advantage in one part of the tech ecosystem is often more important in determining long-term value creation to shareholders than which part of the ecosystem the company operates in.

The metaverse gaming market, which many traditional gaming companies are already trying to enter, is estimated to grow from $44 billion to $131 billion, almost tripling its value.