Pop culture is no longer confined to one platform. It is flowing seamlessly across all entertainment channels, gaming included. If you still think gamers are siloed in their own world, it is time to rethink that.
User-generated content (UGC) platforms like Roblox, ZEPETO, and Fortnite have transformed the landscape. In 2024 alone, 558 brands launched new activations in virtual worlds, a 10% year-over-year increase. With platforms like Roblox boasting over 380 million monthly active users, it is easy to see why brands are keen to get in on the action.
By enabling players to create their own content, these platforms are blurring the lines between pop culture and gameplay, turning gaming into a social media-like, creator-driven ecosystem.
And it is about to scale fast.
Roblox’s new 3D Cube tool, powered by AI prompts, will let anyone easily generate virtual items. This will lower the entry barrier and accelerate the UGC economy’s growth.
So, how will AI-generated virtual items impact gaming and virtual worlds? And what does this mean for brands as well as gaming platforms?
Read on to find out. 👇
1. Rise of transmedia content
According to Meltwater’s Digital 2025 Global Overview Report, Gen Z consumes content across more than seven platforms a month. So, it’s no surprise that trends from other platforms often influence content created within these UGC platforms. We have seen this play out on ZEPETO, where the most popular filters and dances often mirror TikTok’s trending moves. On Roblox, this cross-pollination of content is just as evident.
Carolina Nasr, who has worked on virtual strategies for Coach and H&M, elaborated on this:
“Virtual marketplaces act as cultural barometers, signaling audience interest in new films and TV series through the types of virtual items created. A recent marketplace trend analysis indicated Invincible (animated Amazon Prime series) has captured the attention of Roblox users with various fan-made items appearing on the bestseller list over the past month across various categories.”
2. Lower costs and more relevance
AI-generated item creation significantly reduces the time, resources, and technical skills needed to launch new virtual products. For brands, this means they can react swiftly to trends and quickly create relevant virtual items.
As mentioned before, platforms like ZEPETO and Roblox are closely tied to what is trending on TikTok, Instagram, and other social platforms. From Y2K-inspired fits to coquette-core accessories, we have seen virtual items inspired by social trends quickly climb into the ‘Most Favorites’ lists. Traditionally, creating these assets involved briefing designers, iterating in Roblox Studio, and navigating a multi-step upload and moderation process. AI shortens that cycle.
Salma Diaz Gil, one of the virtual strategists behind L’Oréal Paris and Maybelline on Roblox, expanded on this potential:
“Gen Z expects brands to speak their language, which is shaped by internet aesthetics. With AI-powered item creations, a single prompt can now produce an item that taps into fast-moving internet trends, giving brands the speed they need to stay ahead of the trend curve.”
3. Increased competition
AI makes it easier for creators and brands to enter virtual worlds, but it also adds noise. As marketplaces become more saturated, standing out becomes harder, especially for brands unfamiliar with platform native aesthetics.
One way to break through is by partnering with UGC creators who already have influence. adidas did just that with WhoseTrade, a top Roblox creator, to launch a virtual necklace that sold for 25k dollars. With over 24k followers and a history of high-performing drops, WhoseTrade brought credibility and cultural cachet to the release.
This approach mirrors creator and affiliate models seen on platforms like TikTok, but here, the creators are designing the products themselves.
4. IP infringement risks
Brands focusing on scarcity and brand equity preservation should be mindful of potential IP infringement.
Emmy Pollock, who has worked on virtual strategies for HUGO BOSS and Versace, further explained what AI-generated virtual items could mean for brand infringement:
“In the late ‘90s, Napster made music free, decentralized, and creator-driven. Roblox is now doing the same for digital items, turning the act of creating, sharing, and wearing digital clothes into an accessible new form of expression. With rising IP infringement as a result, brands now face the same choice music labels once did: fight it or collaborate with the creators shaping the future.”
For platforms, they’ll need to instill higher monitoring efforts to preserve IP rights and keep brands happy.
5. Marketplace saturation and optimization
As more creators and brands launch virtual items, marketplace saturation is becoming a real challenge. In 2024, Roblox saw nearly double the number of items created compared to 2023.
With this level of content volume, discovery becomes a problem. To maintain a positive user experience and support creators, platforms need to improve how users find and engage with virtual items. Much like traditional e-commerce, this means investing in search, categorization, and curation tools. ZEPETO has already taken steps in this direction by allowing users to browse by brand and by full-styled looks.
Key Takeaways
As AI lowers the barrier to virtual item creation, we are entering a new era of user-generated economies that are faster, more creative, and more crowded. For platforms, this means evolving discovery tools and strengthening IP protections. For brands, it means approaching virtual worlds as collaborators, not advertisers, and responding to trends with speed and cultural fluency.
The opportunity is massive. But success in this space will depend on how well brands adapt to its pace, participate in its culture, and co-create with its communities. AI may change the tools, but the strategy still comes down to one thing: authenticity.
To learn more about virtual strategies and brands in gaming, sign up to get access to our latest report, The State of Brands in Gaming & Virtual Worlds Part IV. 👇
