26 The Metaverse Overview : Vision, Technology, and Tactics | Technology 2.2 Key technologies' development stages and bottlenecks There is a barrel effect around Metaverse technologies, in which the "shortest board" technology determines the realizable extent of the Metaverse. At present, various technologies only meet the development needs of the initial Metaverse, with 5G having achieved large-scale, low-latency coverage that can accommodate the current scale of Metaverse users, and support for UGC content, 3D engines, and computing power. Current technology and content can meet the primary requirements of the Metaverse, and will continue to evolve. VR, AR and other virtual reality technologies have also reached the basic requirements of the Metaverse and now need to be optimized. Whether XR will become the main entrance to the virtual realm is still unknown. The blockchain is developing steadily, and downstream application scenarios are constantly expanding. Regional policies and laws regulate blockchain-based virtual currency technology. XR XR provides an immersive experience, with the goal of taking over human Figure20: XR experience development Figure21: XR development Source: Public information, Deloitte analysis No Immersion Partial Immersion Deep Immersion Primary Immersion Full Immersion Experience Somatosensory Realization Basic Implementation Initial Realization Not Yet Started Visual 2D Screen Visual 3D Hearing Seeing Hearing Touching Seeing Hearing Touching Smelling Odor Digitization Seeing, Hearing Touching, Smelling Ideas Tasting Brain-Computer Interface Taste? ? Taste is a combination of multiple senses: flavor comes from smell and texture relies on touch, which is very difficult to make virtual Seeing - Glasses, Screen Hearing - Headphones, Speakers Smelling - Smell Movie Touching - Somatosensory Devices Idea - Brain-Computer Interface Tasting Technology VR/AR , Spatial Audio Technology & Acoustic Simula- tion Technology Sensor, AI, Somatosensory Device Source: Deloitte analysis • Home demand catalyzes VR/AR industry penetration • 5G commercial officially announced • Oculus, Microsoft, HTC, Huawei, iQiyi, OPPO, 3Glasses,Pico, Value and other companies intensively launched related products 1968 2012 2014 2015 2016 2017 2018 2019 2021 2020 2011 • Facebook bought Oculus VR for USD2 billion and launched VR headset • Sony announced Project Morpheus VR headset • Google released CardBoard to blend content into VR headsets via smart phone • Samsung released Samsung Gear VR • Microsoft announced development of AR glasses Hololens • AR game phenomenon Pokemon Go launched Numerous companies started to launch new projects: • BBC released 360° documentary We Wait • Six Flags America launched VR roller coaster • Media company RYOT produced VR series Investment Fever Climaxes Constrained by business models and technical bottlenecks, growth was sluggish • Apple releasesd Arkit • Google released Arcore • Baidu, Alibaba and Tencent AR platforms issued • Concept stock Roblox listed • Facebook , Tencent, ByteDance, NetEase, Nvidia, and Epicgames, etc. have successively implemented strategies 1.0 Experiment Germination • Oculus VR developer VR headset Oculus Rift raises USD2.4 million • Google releases AR Google Glass VR/AR Enters the Public Eye 2.0 Development Boom • Ivan Sutherland , the "father of computer graphics" in the United States, developed the first computer graphics- driven helmet- mounted 3D display • The founder of Oculus VR invented prototype VR device 3.0 Trough 4.0 High Speed Develoment 5G + Epidemic + Metaverse • Oculus Go VR headset released • VR game Beat Saber sold 1 million copies • Huawei launched AR engine platform