Here’s why Best Buy is set for a major metaverse boost
Best Buy could be well placed to cash in from the rise of the metaverse, according to a research note this week by Loop Capital Markets.
The consumer electronics retailer could tap into enthusiasm for NFTs, gaming and socialising in a virtual world.
Best Buy is the largest PC retailer in the US, has big box stores where shoppers can try on different headsets and has a team of tech experts who charge for helping consumers with setup, said Anthony Chukumba, MD at Loop Capital Markets.
He added that consumers may need to upgrade computers to higher resolution displays and buy extra equipment from monitors to microphones. That could drive a massive PC upgrade cycle and one also for smartphones.
Loop based its views on a conversation with an unnamed CEO and venture capitalist who specialises in NFTs, blockchain, decentralised finance, gaming and the metaverse.
LVMH
LVMH Chief Executive Bernard Arnault says the metaverse could become a business opportunity for the luxury giant, but “we have to be wary of bubbles”.
“At this stage, we are very much in the real world, selling real products,” he said during the company’s latest earning call. “We are not interested in selling virtual sneakers for 10 euros. We’re not into that.”
He added: “At the beginning of the internet, there were all sorts of things popping up and then the bubble burst. There may be relevant applications, but we have to see what universes might actually be profitable.”
At the same time, however, the metaverse is “thought provoking”.
“It will be interesting to see how it generates profit,” Arnault said. “NFTs are generating profits, and I’m sure this will have a positive effect if things are done properly.”
