Metaverse applications are amongst the hottest trends in 2023. Albeit that a majority of players are trying to get within the space sooner. However, the estimated metaverse development cost is still a huge question.
The idea behind the metaverse has already made its way into pop culture decades ago. The thought of creating a virtual place where users can interact isn’t novel. From the classic Tron to the 2017 Ready Player One, multiple sci-fi movies convey the idea of a metaverse.
With limited computational power and inferior technology, it was a dream. However, today we have a series of top metaverse platforms & apps that turned this dream into reality. Metaverse applications such as Roblox, Decentraland, Illuvium, etc, have already acquired the space. And, there will be new players to come.
Yet with the emergence of new players in the metaverse, every entrepreneur is speculating metaverse development costs for apps. Therefore, to assist and explain the cost to develop the metaverse app in a ballpark, we have written this article.
To learn more…read ahead!
Here are some stats that paint a picture of the existing metaverse market. Have a look:
There are multiple other stats that answer the question, “Why should businesses enter the metaverse?”. However, the idea behind these stats is to establish that the metaverse is the future. A huge number of companies, conglomerates, and organizations will and are already moving towards capturing the market.
There has been substantial investment in the niche, and it is growing day by day. The early players will be most likely to get the biggest chunk of the pie. Everything from then on will only be successful in a saturated market as disruptive technology.
Today, the metaverse is divided into primarily two facets, i.e. Web2 and Web3. Web2 is the generic internet that most of us use daily. However, web3 is decentralized and isn’t censored by any governing body, be it private or public.
To better understand the types of the metaverse, we have mentioned the ones covering the spectrum below:
These are amongst the most common ones. Any open-world game that allows the user to have an online avatar, go places, and interact with users can be categorized within this metaverse. Some great examples of these metaverses are PUBG, Fortnite, GTA, etc. These are moderated by the authorities and are part of Web2. A great example of moderation is the ban on PUBG in India which was later released as Battlegrounds Mobile India.
The idea behind the metaverse is to create interactions in a virtual space. With a centralized blockchain metaverse, a lot of users can interact within the system. Some examples of this type of metaverse are Earth2, Moonga, Nestcoin, etc. NFTs are also centralized blockchain metaverse. In NFTs, the payments take the benefit of blockchain, considering it uses crypto for payment. However, the property is held at the end of a third party. There are also multiple games in metaverse supporting NFTs for playability with real stakes.
Decentralized farming is a great example of a decentralized blockchain metaverse. In this metaverse, instead of authority, the users act as admins. There are pre-established sets of guidelines that the metaverse platform follows. Also, the transactions are carried out via smart contracts. These contracts are digitally coded by the metaverse platform holders, and if the user decides to check the code, then they are allowed. The revenue generation models in this metaverse are of three types:
Some other examples of this metaverse are Sandbox, Axie Infinity, Decentraland, Bloktopa, Engine, etc.
Here are several advantages of metaverse for business such as:
Each of these advantages of the metaverse makes it a compelling technology that is helping it gain popularity.
Here are some metaverse features that make it a plausible place to invest. These are:
Aside from it, there are several other metaverse features that make it one of the most engaging technologies so far. However with the integration of each of these features, the development cost of creating a metaverse shoot up.
To create a metaverse, there is an entire package of metaverse tech stack. This metaverse tech stack allows the apps to take full advantage of the platform. Therefore, the question “What do I need to Develop Metaverse?” can be answered by collaborating with the following technologies:
AI or artificial intelligence is the technology that helps in creating a more inclusive and functional environment for the metaverse. It provides unique experiences to the users and helps in creating a more immersive experience.
Adding to it, there are different elements of the metaverse backed by AI that are integral. These are:
Identical to these, several other elements of metaverse backed by AI aiding in making a more realistic AI environment. We have barely scratched the surface. In the future, we can expect many more elements of metaverse to interact with the user.
Various animators and CGI artists have gained prominence post the introduction of the metaverse. Considering the metaverse is a navigable virtual world, the environment created needs to be in 3D for avatars to move. With CGI artists aiming to achieve photo-realism 3D animation is and will be playing a much more important role.
Virtual reality and metaverse are often confused with each other. Metaverse is essentially a platform where a virtual environment is created. On the other hand, virtual reality is the technology that makes the metaverse accessible in a virtual environment. With the collaboration of the two, the metaverse created can have a much more immersive experience.
Web3 is the future. Adding to it, the idea behind Web3 is decentralized. To create a metaverse with truly decentralized environment, the metaverse would require blockchain. Essentially a metaverse is created using blockchain technology because it requires interconnection between various components. It will help in the usage of digital assets and smart contracts that are essential to the system.
The Internet is the plane in which the metaverse will operate. Multiple audio streaming services, OTT platforms, social media networks, etc. all rely on the internet for their operations. Similarly, the metaverse is also a collection of services interacting with each other. To leverage this interaction, the internet is required. Without the internet, the metaverse can not exist.
Augmented reality is a way to augment objects overlaying in a real-world environment. Augmented reality can be utilized using both a VR kit and a mobile device. It provides an interactive experience by letting the user experience computer-generated objects defining real-world objects. In a metaverse, AR can be used for playing games, interactions with objects in an environment, training, etc.
Metaverse requires a huge 3D model that is rendered in real-time. To create a metaverse experience truly immersive, users require mobile device processors. These processors will provide portability and computing power to render real-time 3D objects.
To understand the cost to develop a metaverse app, it is important to understand the type of application being developed.
Primarily the metaverse apps created today belong to three segments i.e.
The idea behind a metaverse game is to create a virtual world where gamers are interacting. To pull this through, the game would require a series of technologies such as AR, VR, Blockchain Technology, Cryptocurrency, and IoT.
The average metaverse development cost for gaming can lie anywhere from $25/hr to $150/hr. Some of the development firms taking projects for the metaverse can even go higher.
Adding to it, the total cost to develop a metaverse app depends on the scope of the gaming application. Some games have taken years to develop. On the other hand, there are gaming projects that were created stand-alone by a developer in a couple of weeks.
On average, it can take up to 6 months even for a simple metaverse gaming app to develop. If we consider a team of 5 members with 40 hrs of work weekly put in, the cost of developing the metaverse app can take:
| Pricing Range | $25 - $150/hr |
| Number of Team Members | 5 |
| Weekly Hours Contributed | 40 hrs |
| Total Hours Contributed | Weekly hours * Number of Team Members * Number of weeks in a month * Number of Months = 40*5*4*6 = 4800 hrs |
| Lowest Development Cost | $25*4800 = $120,000 |
| Highest Development Cost | $150*4800 = $720,000 |
Note: The calculations mentioned above are rough estimations and can vary depending on the project.
There is no fixed cost associated with developing a social media app for the metaverse. Also, it requires constant integration of new features to stay ahead of the competition.
However, keeping a milestone in mind, let’s say a company decides to launch a beta version in a year.
The average cost to develop a metaverse app for social media is mentioned in the table below:
| Pricing Range | $25 - $150/hr |
| Number of Team Members | 10 |
| Weekly Hours Contributed | 40 hrs |
| Total Hours Contributed | Weekly hours * Number of Team Members * Number of weeks in a month * Number of Months = 40*10*4*6 = 9600 hrs |
| Lowest Development Cost | $25*9600 = $240,000 |
| Highest Development Cost | $150*9600 = $1,440,000 |
Note: Social media apps require multiple features to work upon, therefore, a bigger team.
Real estate is another segment that is booming in the metaverse infrastructure. With the power of VR and AR, real estate companies can give virtual tours to their prospective customers.
Keeping a milestone of 3 months in mind for a basic real estate application, here are the calculations for an average cost to develop a metaverse real estate app:
| Pricing Range | $25 - $150/hr |
| Number of Team Members | 5 |
| Weekly Hours Contributed | 40 hrs |
| Total Hours Contributed | Weekly hours * Number of Team Members * Number of weeks in a month * Number of Months = 40*5*4*3 = 2400 hrs |
| Lowest Development Cost | $25*2400 = $60,000 |
| Highest Development Cost | $150*9600 = $360,000 |
Note: Basic real estate apps require fewer pages and 3D simulation, therefore, lower development time.
It took 15 years for Mark Zuckerberg to come up with the existing metaverse. Adding to it, the platform is still in its evolution phase. Currently, the online avatars on the platform and the overall interaction look a lot more animated in comparison to how they were marketed. Yet, the people in the segment are constantly working to make the experience a lot more immersive.
Albeit that the question “is it possible to create your own metaverse” can be answered one way. The metaverse development process will require tremendous resources, therefore, it is possible with a huge budget and resources available. On the other hand, developing an application that captures the metaverse market is much easier in comparison. Realistically, the entire cycle for the metaverse development process can be catered by a company of small to mid-level. There are already multiple successful applications operating in the niche. Also, there is plenty to come in the future as the metaverse gains more prominence in the future.
There isn’t an iota of doubt that the metaverse market will be growing at a rapid pace. Various metaverse development companies are constantly working to turn this into a reality. There are available technologies that replicate the same experience such as 360-degree views, google maps, google earth, etc. A combination of these and similar technologies in a virtual architecture is going to make the metaverse stronger. With advancements in technology, the metaverse development cost invested has a higher ROI. It only needs a few independent players to push the market into the mainstream and sooner, all of us would be experiencing a new reality.
Aparna is a growth specialist with handsful knowledge in business development. She values marketing as key a driver for sales, keeping up with the latest in the Mobile App industry. Her getting things done attitude makes her a magnet for the trickiest of tasks. In free times, which are few and far between, you can catch up with her at a game of Fussball.
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