Major Metaverse Platforms Face Fatal Consequences Over the Past Year

The Metaverse was the dominant technology trend post-COVID. With the shift to remote work and virtual meetings becoming more popular, international virtual meeting platforms saw a surge in interest and investment.

During this time, forward-thinking companies explored new opportunities for digital communication, focusing on consumer experiences and enterprise support within the Metaverse platform.

Although some major companies like Nike and Lenovo experimented with virtual environments, interest in fully immersive VR working environments declined as the world returned to traditional work setups. Instead, there was a growing focus on partially immersive solutions like MR, AR, and spatial computing devices like Apple’s Vision Pro.

As a result, some major Metaverse and virtual meeting platforms began to struggle financially, leading to closures, layoffs, and reduced investments. Here are some recent casualties of the Metaverse crash.

VRChat Reduces Staff by 30%

VRChat recently announced a 30% reduction in staff due to slower growth post-COVID. CEO Graham Gaylor attributed the layoffs to the company’s need for continued growth despite a market that was slower to mature.

Gaylor highlighted that VR Chat did not maintain its previous growth levels and had an oversized organization for its user base, leading to the need for downsizing.

Despite the challenges, the CEO expressed optimism for the platform’s future with new leadership and a clear mission.

Glue Collaboration Faces Bankruptcy

The company behind the virtual reality platform Glue declared bankruptcy, prompting the shutdown of the platform temporarily. However, Hyperspace recently purchased Glue with hopes of reviving its success.

Mozilla Closes Hubs Service

Mozilla announced the shutdown of its Hubs virtual platform due to organizational restructuring. The decision led to the closure of the platform and community resources, marking the end of an era for the five-year-old service.

Although the shutdown was a significant change from the company’s previous plans for expansion, Mozilla assured users of support during the transition.

Meta Downsizes Horizon Operations

Meta recently removed features from its Horizon Workrooms platform amid declining user interest in the Metaverse. Despite this, the company seems to be working on optimizing its platform for a potential comeback.

With Meta Connect 2024 on the horizon, the company is expected to make significant announcements regarding its immersive software and hardware developments.

Microsoft Shuts Down AltspaceVR

Microsoft closed AltspaceVR in favor of its Teams-integrated Mesh virtual collaboration service. The decision was made to focus on the development of Mesh and provide new opportunities for creators and users.

Despite challenges faced by Microsoft’s immersive divisions, the company is now focusing on enhancing its XR technology within Teams for a renewed focus on immersive collaborations.

The Future of the Metaverse

Despite setbacks, many Metaverse services like Engage and Roblox continue to thrive. The landscape of the Metaverse is evolving, with technology trends influencing industrial Metaverse and spatial computing workflows.

As the industry continues to evolve, with the integration of MR, AI, and educational solutions, there is potential for a Metaverse resurgence. The mainstream acceptance of 3D online platforms could pave the way for a renewed interest in the Metaverse among future generations.