Design firms find new business in the metaverse as Covid-19 drives interest in virtual world

As Covid-19 deals a blow to businesses, design firms shift to building experiences inside the metaverse

Animoca Brands has pledged US$50 million to venture capitalist firm Brinc to fund start-ups to create inside The Sandbox

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The Sandbox, a subsidiary of Animoca Brands, is a virtual world where people can interact with avatars. Photo: Handout

Published: 6:30pm, 28 Jan 2022

For over 10 years, Kenny Ng’s Hong Kong design production company Kenal Group hummed along, designing billboards and planning events for a variety of clients. But the Covid-19 outbreak in 2020 threw his business into disarray, forcing Ng, in his 40s, to search for new revenue streams.

Much to his surprise, he found his answer in one of technology’s hottest buzzwords: the metaverse. Over a few weeks starting last November, Ng put together a new studio named PanGu, with about 10 designers dedicated to building experiences in The Sandbox, a virtual world backed by Japanese conglomerate SoftBank Group Corp. The venture quickly drew new clients, such as Taiwanese singer Nine Chen, who is planning a virtual concert.

“We are now working on two projects and about to get a few more. So we’ve been busy for sure,” Ng said. “We are looking to hire a few more people to the team after Chinese New Year.”

The office of Kenal Group in the Hong Kong district of Kowloon Bay. The design company recently started a new venture, PanGu, to create virtual structures inside metaverse platform, The Sandbox. Photo: Handout

PanGu followed the footsteps of Index Game, the first Hong Kong company devoted to creating projects inside The Sandbox. The business, a spin-off of interior design firm Index Design, was set up by three co-founders during the pandemic and expanded to a team of 18 in about half a year.

While the metaverse is still an evolving concept, advocates such as Facebook founder Mark Zuckerberg believe that it could be the next paradigm shift of the internet, which would allow people to interact in an immersive 3D space. More companies are starting to experiment with the idea, including the South China Morning Post, which said last year it was partnering with The Sandbox to create metaverse educational experiences.