Nike Betting On The Metaverse With NIKELAND In Roblox: What Investors Should Know

Popular video game Roblox Corporation RBLX is getting support from a newly public company using their metaverse to appeal to a new demographic of fans.

What Happened: Nike Inc NKE announced Thursday the creation of NIKELAND in Roblox. The place is described as a place for fans to “connect, create, share experiences and compete.”

“Buildings and fields inside NIKELAND are inspired by Nike’s real-life headquarters and hold detailed arenas for the Roblox community to test their skills competing in various mini-games,” Nike said.

Roblox creators will be able to design their own mini-games from Nike sports materials called the NIKELAND tool kit. “Dream it. Make it. Play it.”

Nike plans to connect the real-world to the virtual world with in-game moves connected to offline movement.

Nike items like virtual footwear will be featured with a virtual showroom where a user can outfit their Roblox avatar. Nike said the Air Force 1 and Air Max 2021 will be included and other items in the future.

NIKELAND is launching as a free experience for anyone in Roblox.

“NIKELAND is free for anyone to visit and experience on Roblox, breaking down one of the biggest barriers to sport – access.”

Players in NIKELAND games will be rewarded with blue ribbons and gold medals, which can unlock virtual products.

Nike is also partnering with Snapchat, a unit of Snap Inc SNAP, to bring the virtual world to life at Nike’s House of Innovation ion New York City this December. A special Snapchat lens will launch through the partnership, taking fans inside NIKELAND in person.

Related Link: Roblox Q3 Earnings Highlights: Revenue Up 102%, DAUs Hit 47.3M, October DAUs Grow Before Outage

Why It’s Important: Roblox has hosted virtual listening parties and seen its user base grow over the years. This could be one of the biggest bets by a company on utilizing Roblox as entry into the Metaverse.

Nike has been filing patents for virtual goods and announced plans for NFTs.

Roblox is considered to be one of the best bets on the Metaverse, a surging topic since Facebook Inc FB announced a name change to Meta.

Morgan Stanely raised a price target on RBLX shares from $88 to $150, citing the growth of the metaverse. 

RBLX Price Action: Shares were up 1% to $126.05 on Thursday. Shares are up 63% in the last month and have doubled since their direct listing in March.