Nike is positioning itself to be a beneficiary of the metaverse

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Nov 18, 2021
Updated: Nov 23, 2021
  • Nike Inc partners with Roblox Corp to launch a virtual world its calling Nikeland.
  • The sports apparel company might use Nikeland to test its products in future.
  • Neither of the two stocks have responded positively to the announcement so far.

Metaverse seems to be the next big thing after the internet itself, and Nike Inc (NYSE: NKE) wants a piece of it.

The sports apparel company on Thursday partnered with Roblox Corp (NYSE: RBLX) to launch a virtual world its calling Nikeland on the gaming company’s online platform.

Nike might use the virtual land to test its products

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The announcement this morning said Nikeland is modelled after the American multinational’s headquarter in Beaverton, Oregon. The virtual world, at least for now, is free for Roblox users and offers several means of entertainment, including mini-games like dodgeball, tag, and the floor is lava.

Nikeland also features a digital showroom where kids can dress up their avatars in a wide range of Nike products. Eventually, as per Williams Trading’s analyst Sam Poser, the American multinational might also switch to launching its products virtually first to see how fans respond.

“If they know a bunch of kids are wearing it on Nikeland, they will then come out with it in the physical world.”

The news comes shortly after rival Vans launched a virtual immersive world experience on Roblox to set it up as a beneficiary of the metaverse.

Nike filed seven new trademarks earlier this month

Nikeland is particularly more exciting for users on devices equipped with accelerometers as they can make their virtual world avatar emulate their real-world movements.

Earlier this month, Nike filed seven new trademarks, hinting at plans of making and selling virtual Nike-branded sneakers and apparel. Today’s announcement marks the second time Nike is collaborating with Roblox. It has worked with the video games developer in 2019 on Nike Air Max Day.

Shares of both Nike and Roblox are trading lower on Thursday. Last month, Goldman Sachs initiated Nike with a “buy” rating.

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