Alibaba to Test Metaverse Gaming as Big Tech firms Stampede into Virtual World

Dec 14 - Alibaba Group Holding has registered a new company in Beijing named Yuanjing Shengsheng to test metaverse gaming potential. The Yuanjing Shengsheng’s business is related to the metaverse, according to a report by Chinese media outlet Chinastarmarket.cn, citing unnamed Alibaba employees.

China’s Big Tech firms are doubling down on what many see as the future of the internet.

The new unit, Yuanjing Shengsheng wholly owned by Alibaba’s investment arm, its major business as software development and services related to the metaverse.  It has 10 million yuan (US$1.6 million) in registered capital.

The establishment of the new unit underscores Alibaba’s interest in the metaverse, a shared, immersive 3D virtual space where people can interact and trade. This is in line with Alibaba’s strategy for the metaverse, to leverage its edge in technology and cloud computing technology to establish the essential infrastructure for the metaverse.

The race towards the metaverse has gathered pace in China in recent months.

Big Tech companies have applied for trademarks related to the metaverse to pave the way for future plans around the red-hot concept. Metaverse development could facilitate Alibaba to create its own consumer-facing layer and focus on areas such as the burgeoning ‘direct-to-avatar’ economy that could take off and revolutionise Alibaba's core e-commerce business.

The metaverse – a term coined by American writer Neal Stephenson for his 1992 science-fiction novel Snow Crash – refers to a lifelike, immersive virtual world where people can meet, work and play using devices including virtual reality (VR) headsets, video gaming consoles, and gadgets that offer augmented reality technology like smartphones and smart glasses.

Hong Kong and New York-listed Alibaba has submitted applications to trademark the Chinese terms for “Ali Metaverse”, “Taobao Metaverse” and “DingDing Metaverse”, according to business research firm Qichacha. Taobao is Alibaba’s flagship online marketplace, DingTalk is the company’s chat app.

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