Where Does Metaverse Rank in the Trend Scale?

The Metaverse, a once-hyped technology promising a disorienting video-game-like world for users, has met its end, abandoned by the business world.

Born in 2021 when Facebook's Mark Zuckerberg rebranded his trillion-dollar company Facebook as Meta, the Metaverse quickly became a tech world obsession and a way to attract Wall Street investors as well as excited consumers chasing after the next big thing. However, the lack of a coherent vision led to its downfall as the tech industry shifted its focus to generative AI.

Is the Metaverse dead? Where does it rank in the trend scale? Let’s find out!

Image: Unsplash

Let’s remember: what is the Metaverse?

The metaverse is a virtual, interconnected universe comprising digital spaces, environments, and objects. It's not limited to one platform or experience but instead encompasses a myriad of interconnected virtual realities. Picture it as a vast, immersive, and interconnected digital ecosystem, where users can interact with each other and digital environments in real-time.

Metaverse Use Cases and Benefits

• Enhanced Connectivity: The metaverse promises to bring people from around the world together like never before. Through virtual spaces and environments, users can connect, collaborate, and socialize, transcending physical boundaries.

• New Economic Opportunities: The metaverse presents unique economic possibilities with virtual real estate, digital currencies, and novel job opportunities. This can empower entrepreneurs and creators in ways previously unimaginable.

• Education and Training: Learning can be made more engaging and accessible, as students can immerse themselves in educational simulations and gain practical experience within a controlled virtual environment.

• Entertainment Evolution: The entertainment industry is poised to benefit greatly from the metaverse. Movies, gaming, live events, and more will become more interactive and immersive, offering a richer and more dynamic experience.

• Creative Expression: Users will have the tools to design, build, and manipulate virtual spaces, fostering unparalleled creative expression and artistry.

Metaverse Controversies

• Privacy Concerns: The metaverse's interconnected nature can raise serious privacy and security issues as personal data and interactions become more exposed to potential misuse or theft.

• Escapism and Addiction: As the metaverse becomes more enticing, some individuals might prefer to spend excessive amounts of time in virtual worlds, potentially neglecting their physical and mental well-being.

• Social Skills: The metaverse's immersive nature could potentially erode traditional in-person social skills, leading to difficulties in face-to-face interactions.

• Economic Inequality: Just like in the real world, the metaverse could become a place of economic disparities, with some individuals reaping the rewards while others struggle to keep up.

• Legal and Ethical Challenges: New legal and ethical questions will arise, including issues of copyright, digital ownership, and governance within virtual spaces.

The Impact of the Metaverse on Human Social Skills

One of the most pressing concerns surrounding the metaverse is how it may affect human social skills. While it can enhance virtual interactions, there is a risk that people may become overly reliant on these digital connections. Face-to-face communication, body language, and non-verbal cues are essential components of human interaction. Overindulgence in virtual interactions could potentially hinder one's ability to communicate effectively in real-world settings.

Many experts have been claiming that the metaverse will change the way we work and replace real life experiences soon. Is that really so?

Metaverse 2023: the development  

Mark Zuckerberg had grandiose visions of the Metaverse as the future of the internet, promising seamless interactions in virtual worlds. Despite media hype and impressive projections, the technology failed to deliver on its promise. Instead of futuristic vistas, users witnessed awkward virtual interviews. The Metaverse also suffered from an identity crisis, lacking a clear use case, a target audience, and a basic business proposition. 

Businesses rushed to join the Metaverse trend, with various companies investing in it, from Microsoft to cryptocurrency projects. Wall Street projections were sky-high, but the Metaverse struggled to attract users. For instance, Decentraland, a well-funded crypto-based Metaverse product, had only a small number of daily active users, far from expectations.

Consumers then started experiencing peer pressure to own property and IP in the metaverse.

The demise of the Metaverse should serve as a cautionary tale in tech history. It was driven more by share price goals than a genuine vision for human interaction. The tech industry, venture capital community, and Mark Zuckerberg himself should reflect on their roles in promoting a concept that ultimately failed. The abrupt shift away from the Metaverse also raises questions about Zuckerberg's leadership at Meta, with the company's future uncertain. According to Statista, Meta’s Metaverse project recorded an operating loss of $4.0 billion, following an eye-watering total of $13.7 billion in 2022. That’s on top of a $10.2 billion loss in 2021, $6.6 billion in 2020, and $4.5 billion in 2019, bringing the total wager for Zuckerberg’s big bet close to $40 billion over a period of four years. Despite aggressive cost-cutting measures, Meta still expects Reality Labs operating losses to increase year-over-year in 2023.

Image: Unsplash

Metaverse 2023: the status quo

The Metaverse's demise became evident as the economy slowed and generative AI gained traction. Major companies, including Microsoft, Disney, and Walmart, abandoned their Metaverse projects, leading to job losses. Zuckerberg and Meta shifted their focus to AI, leaving the Metaverse behind.

Moreover, we see once-enthusiastic consumers lose interest in the experience. A recent survey by EU-startups inquiring how much time the participants spend in the Metaverse per week reveals that 93% of the participants do not spend any time there. Most users seem to spend less than 5 hours per week, making metaverse projects a money pit.

Metaverse Poll Results by EU-Startups (October 2023)

Looking at the results, we might not conclude that the Metaverse is dead, but it's definitely in agony. Is there a way to save it? For sure, however, the creators should deliver meaningful use cases and safety and security before reopening doors to the public.