Bandai Namco, a Japanese video game producer, has announced plans to invest $3 billion in the metaverse. It won't be the first time the corporation has announced plans to enter the developing market, as other traditional gaming companies are also looking into it.
Web 3 and the Metaverse: Awaiting Their Arrival
Bandai Namco, Japan's third largest gaming business and one of the world's largest, has announced ambitions to create metaverses based on its extensive catalog. According to the company's press statement on Tuesday, it plans to do so with a $3 billion fund, which will raise around $24 million over three years.
It's not the first time the corporation has shown a desire to enter the metaverse. Bandai Namco announced in February that it would invest $15 billion (approximately $130 million) in creating a metaverse around Gundam, one of its most well-known IPs.
According to the business, the "Bandai Namco Entertainment 021 Fund," a $3 billion metaverse investment fund, would focus on developing entertainment products and services that run on blockchain, VR, and AR gears, as well as investments in Web 3 and metaverse startups. Other fund applications would invest in web 3 and metaverse businesses at different stages of development.
Yasuo Miyagawa, the company's president, said in a statement about the fund that the company has decided for a while not to limit itself to just games and has ventured into other forms of entertainment. As the era of Web 3 and the metaverse approaches, Miyagawa indicated that the company is aggressively cultivating business and financial partnerships with key businesses. Miyagawa believes that these efforts will result in a unique entertainment experience.
The gaming corporation is well-known for owning the popular game Elden Ring. The publisher intends to raise $1 billion every year for the fund over the following three years.
Companies in the gaming industry are preparing for the metaverse.
Traditional gaming businesses have taken notice of the rise of play-to-earn (P2E) games and the hype surrounding the metaverse. Bandai Namco is the most recent corporation in the game industry to enter the fray.
Epic Games, the creators of the popular battle royale game Fortnite, announced on Monday that they had received $2 billion in funding to construct a metaverse. The investment from Sony and KIRKBI Investments comes just a week after the company announced a collaboration with LEGO to create a children's metaverse.
Ubisoft, the maker of the Assasin Creed games, has also announced partnerships with The Sandbox and Sky Mavis, the creators of the number one P2E game Axie Infinity. The metaverse's popularity is only going to grow, based on all signs.