The idea of the Metaverse, a truly immersive virtual world where individuals may connect and communicate with each other, has gained popularity in recent years in the Web3 domain. With the introduction of virtual and augmented reality technologies, the concept of the Metaverse has grown more realistic, and several firms are exploring techniques to develop their own versions of it.
However, the key question that people keep asking is, “Will the metaverse ever be real?” as tech behemoths are pulling their investments in the domain and abandoning their aspirations to venture into it. It still appears to be primarily experimental at this point and is unlikely to take the place of online communications as we now know them.
Companies are losing big in the metaverse
While Microsoft believes that gaming will aid in the opening of the doors to the Metaverse, other tech conglomerates are adopting a different approach. The most well-known firm associated with the “metaverse” is presumably Facebook, which was renamed to Meta in 2021 and shifted its emphasis to further develop the social platform in the metaverse.
Meanwhile, in 2022, Mark Zuckerberg’s Meta virtual and augmented reality company lost $13.72 billion while attempting to create the metaverse. As a result, Meta shares plummeted following third-quarter results report in September 2022, which showed a 50% fall in profits and a 4% decline in sales. The corporation had significant layoffs as a result of this loss, totaling over 10,000 in 2023 alone.
Meta recently wound down support for non-fungible tokens (NFTs) on Instagram and Facebook.
That’s not all. Other projects betting on the metaverse are losing their investments. The most recent company to suffer from metaverse’s shortcomings is Disney, which disbanded its cross-divisional Next Generation Storytelling and Consumer Experiences group. This group represented the Mouse House’s metaverse aspirations.
Disney is reportedly under pressure from investors to make cuts to nonessential businesses, which evidently included its metaverse plans. Meanwhile, the US company announced $5.5 billion in cost reductions and the elimination of around 7,000 positions as part of a larger restructuring plan.
The slow rise in the popularity of the metaverse has disappointed IT corporations that have gambled on new entertainment models. The majority of them have committed billions of dollars in resources to the metaverse only to discover minimal demand and massive user ignorance over how to use the technology.
Can we see a complete metaverse?
A future where people can easily collaborate in a fully immersive environment is something that is achievable. However, it’s important to be aware that the major factors expected to drive revenue growth in the metaverse are the increasing momentum and popularity of Mixed Reality (MR), Augmented Reality (AR), and Virtual Reality (VR), among other factors.
Meanwhile, there are still significant technical limitations that need to be overcome. For example, current VR and AR technology are still relatively bulky and uncomfortable to wear for extended periods of time, which limits the immersion factor. In fact, that’s one of the complaints users have.
Additionally, the computing power needed to create a fully immersive world that can be accessed by millions of people simultaneously is currently beyond the capabilities of even the most powerful supercomputers.
There are also social and economic challenges that must be addressed before a true Metaverse can become a reality. These include questions about ownership and control of virtual property and concerns around privacy and security.
In terms of when we will see a complete Metaverse, it’s difficult to say. It’s likely that we will see continued progress in the development of virtual worlds and immersive technologies, but it may be many years, if not decades, before a true Metaverse becomes a reality.
It’s also possible that the concept of the Metaverse will continue to evolve and change over time, and what we consider to be a “complete” Metaverse today may look very different in the future.
Overall, while technical and societal challenges need to be overcome, the idea of a fully immersive virtual world where people can interact and engage with each other is an exciting prospect that many companies and individuals are actively working towards and improving on.
