Walmart Inc WMT is a big bet on the growth of the metaverse with a partnership with leading gaming company Roblox Corporation RBLX.
What Happened: Walmart announced the launch of Walmart Land and Walmart's Universe of Play on Monday.
Walmart will use its Universe of Play as a virtual toy destination, coinciding with the upcoming holiday shopping season.
The launch of Walmart Land and Walmart's Universe of Play is a big step in the direction of creating community, content, entertainment and games, according to William White, Walmart U.S. Chief Marketing Officer.
The company is calling the partnership a virtual store with Walmart merchandise, which will be one of the features of the partnership. Users can unlock badges and token through games and competitions.
Other features include Electric Island, a virtual music festival with dance challenges and Netflix Inc. NFLX trivia, House of Style with a virtual dressing room and Electric Fest, a virtual concert experience with performances from artists like Kane Brown, YUNGBLUD and Madison Beer.
The partnership with Walmart strengthens the use case for Roblox as the top destination in the metaverse and gaming space, giving access to millions of people who are loyal monthly active users of Roblox.
We know our customers are spending a lot of time there because of Roblox, one of the fastest growing and largest platforms in the metaverse. We are focusing on creating new and innovative experiences that excite them, something we're already doing in the communities where they live, and now the virtual worlds where they play, White said.
Walmart is one of the biggest retailers in the world, with over 230 million customers and 10,500 stores worldwide. The retailer filed metaverse-related trademarks earlier this year, as previously highlighted by Benzinga. Walmart is looking at launching its own digital currency and non-fungible token.
Walmart is partnering with Nike Inc NKE to establish a presence in the metaverse. Over 6.7 million people from 224 countries visited NIKELAND on Roblox in the first few months of launch, according to Nike in March 2022.
The shares of Roblox fell by 60% in 2022. The company reported second quarter revenue of $591.2 million, up 30% year-over-year, but shy of a Street estimate of $645 million.
The second quarter's daily active users were 52.2 million for the company. Average bookings per DAU fell 21% year-over-year in the second quarter.
Partnering with companies like Nike and Walmart could show the use case for Roblox as a bridge to the metaverse and give access to millions of people interested in the virtual worlds.
RBLX Price Action: Roblox shares are up 2% to $36.25 on Monday, against a 52 week range of $21.65 to $141.60.