The Fall of Metauniverse: Reasons Behind Its Decline and What Lies Ahead

According to reports, the previously popular metauniverse in the scientific and technological world has “fallen out of favor.”. Disney will cancel its Meta Universe division, Microsoft has closed a social virtual reality platform it acquired in 2017, and Zuckerberg, who renamed Facebook Meta to show his importance to Meta Universe, said in a earnings conference call last month that he is more focused on artificial intelligence. At the same time, the price of virtual real estate has also dropped significantly. According to data from WeMeta, a website that tracks land sales in the Metaworld, the median land sales price in Decentraland has decreased by nearly 90% compared to a year ago, from $45 per square meter to $5 per square meter. (Wall Street Journal)

Technology giants shrink the yuan universe business, virtual real estate prices plummet

The Metauniverse, once considered the future of innovation and technology, is facing a decline. Big players in the industry such as Disney, Microsoft, and Facebook have either shut down their operations or shifted their focus from the Metauniverse to other ventures. In this article, we will delve into the reasons behind this shift and what the future holds for the Metauniverse.

Understanding Metauniverse

Before we get into the decline of Metauniverse, let’s understand what it means. Metauniverse is a virtual world where people can connect, interact and engage in various activities. Metauniverse architecture involves the creation of a shared universe where individuals can interact with a wide range of digital devices.

The Decline of the Metauniverse

The reasons behind the decline of Metauniverse are multifold. Firstly, the technology is still in its infancy stage, and the user experience is not as engaging as it should be. Secondly, the high cost of developing and maintaining the Metauniverse projects has put off many investors who were not willing to take the risk. Finally, the lack of clear regulations and guidelines from the government has created a lot of uncertainties, especially regarding privacy and data protection.

The Big Players’ Exit

Disney’s Metauniverse division announced its closure back in October 2021, following the exit of several top-level executives. They cited concerns over the project’s viability, given the many challenges they faced. Microsoft, on the other hand, closed down its social virtual reality platform, AltspaceVR, in March 2022. Meanwhile, Facebook changed its company name to Meta and announced a new focus on artificial intelligence.

The Effect on Virtual Real Estate

Despite the hype and high expectations, the plummeting virtual real estate market shows that the Metauniverse is not immune to market forces. The median land sales price in Decentraland has decreased by nearly 90% compared to a year ago, from $45 per square meter to $5 per square meter, according to data from WeMeta. This decline in value could either be attributed to the lack of interest, the overhyped expectations, or both.

The Future of Metauniverse

However, the big question that remains unanswered is, what does the Metauniverse’s decline mean for the future? Is it the end of the road for virtual reality, or is it just a temporary setback? The answer lies in the fact that virtual reality is still a budding industry with a lot of potential. As technology advances and becomes more affordable, the user experience will become more immersive, leading to more significant adoption. Additionally, new regulations will create clear guidelines for the industry, inspiring confidence for investors and users alike.

Conclusion

The Metauniverse’s decline is an indication that the virtual reality market is far from mature. Investors and users should not give up on the technology but instead be encouraged to continue exploring different possibilities. The future remains promising, with many opportunities for growth and innovation.

FAQs

Q: What is the Metauniverse?
A: The Metauniverse is a virtual world where people can connect, interact and engage in various activities.
Q: Why are big players in the industry shifting their focus from the Metauniverse?
A: The high cost of developing and maintaining the Metauniverse projects and the lack of clear regulations and guidelines from the government has created a lot of uncertainties.
Q: What does the Metauniverse’s decline mean for the future?
A: The answer lies in the fact that virtual reality is still a budding industry with a lot of potential. As technology advances and becomes more affordable, the user experience will become more immersive, leading to more significant adoption.