Promising a virtual world on the verge of revolutionizing everything from leisure to social interactions, the metaverse used to be the coolest tech in town. Yet the concept has largely slipped out of public discourse. Countless metaverse projects have cost companies billions. Much like other tech fads like non-fungible tokens, the global buzz around the metaverse has died down. Despite these setbacks, it may still be too early to declare the metaverse dead.
A once-ballyhooed technology sidelined by artificial intelligence
At its inception, the metaverse was hailed as a technological breakthrough as significant as the advent of the internet. The excitement around Mark Zuckerberg’s vision of an immersive virtual universe was palpable in the wake of Facebook’s rebranding to Meta. Retail heavyweights like Walmart mapped out their metaverse plans, and Microsoft aimed to unleash the technology’s potential to revolutionize the flexible workplace. Virtual reality headsets seemed to be the next frontier.
By 2023, however, Microsoft had laid off its entire industrial metaverse division. Zuckerberg announced that artificial intelligence would become his company’s single largest investment. Meanwhile, high-profile failures in the VR ecosystem prompted many companies to shift their focus to AI-powered wearable computers. Yahoo Finance reports that Apple is shelving its Vision Pro revamp, going all in on the smart glasses race to catch up on Meta’s augmented reality glasses.
A fading interest in the metaverse
Several drawbacks halted the mainstream adoption of the metaverse. For one, VR hardware stayed out of reach for most casual users due to a hefty price tag curtailing their appeal. Even tech-savvy users couldn’t get past blatant technological limitations, recognizing that the immersive experiences they had been promised was far from fully realized in practice. Worse still, most headsets remain downright uncomfortable for prolonged sessions.
Competing narratives also led to confusion among consumers and businesses, with too many initiatives overcrowding the metaverse landscape. Lacking any convincing use cases, the metaverse suffered from dwindling media coverage, which only expedited its downfall.
Could a metaverse revival be on the boil?
The metaverse has been a major casualty of the AI spending boom. With the age of agentic AI upon us, tech companies have scaled back their VR ambitions to prioritize machine learning, and AI high-performance computing. A trillion-dollars arms race is pitting tech firms against one another, with giants like Google and Meta investing heavily on their AI and cloud infrastructure.
Posting an operating loss of $4.53 billion in its second-quarter earnings according to CNBC, Meta’s Reality Labs division has been hemorrhaging funds since 2022, in stark contrast with the company’s raised spending forecast on artificial intelligence. Yet, Meta’s CEO pushed back against claims that his company was abandoning the metaverse, firmly holding on to his long-term dream.
Navigating the metaverse’s limitations
Although the two fields seem at odds, generative AI has the potential to strengthen metaverse initiatives in specific sectors like art, digital marketing, and gaming by improving functionality and user experience. For instance, artists and galleries increasingly use metaverse spaces for exhibitions.
In retail, major corporations like Nike were among the earliest metaverse pioneers. The sportswear giant partnered with Fortnite to allow players to equip exclusive digital outfits in-game. This direct-to-avatar business model has gained traction among brands using gamification to attract new audiences.
The case for metaverse in gaming
Many brands have turned to Roblox as their preferred metaverse destination to connect with Gen Z and Gen Alpha. Dubbed Gen Alpha’s digital playground, the platform empowers its 380-million-strong community to create their own game. In North Carolina, the emergence of Roblox tutors has made coding even more accessible to kids. Blockchain-based platforms are also trailblazing new ways for developers to reimagine and monetize their work.
Decentraland notably collaborated with Atari to launch crypto casinos in its Vegas City district. Although groundbreaking, these crypto-led initiatives remain restricted in scope. Non-techie gamers may prefer traditional platforms like Vegas Slots Online to scratch their iGaming itch. From free-to-play to real-money games, players can access extensive libraries with no registration or downloads required. Newcomers may still want to sign up to claim welcome packages such as free spins and no-deposit offers. Industry experts help them single out the most trustworthy promotions offered by licensed online operators.
Many tech leaders continue to pour resources into the metaverse, trusting in AI tools to refine their long-term vision. The success of platforms like Roblox shows that the metaverse still holds real potential, even if it doesn’t nearly resemble the futuristic fantasy many anticipated.