Analyst believes most metaverse business projects will close by 2025

midian182

Posts: 8,493   +105
Staff member
In context: Mark Zuckerberg's faith in the metaverse remains unwavering, but not everyone shares his belief that this virtual/mixed reality vision is the future of how we work and play online. One of these is market research firm Canalys, which predicts that most business projects in the metaverse will have shuttered by 2025.

Reality Labs, the division focused on Meta's hardware and metaverse aspirations, has lost around $16 billion since the start of last year and is making cutbacks as a result, including the dual-camera smartwatch. But Zuckerberg still believes the metaverse will make hundreds of billions, if not trillions, of dollars over time. That's despite the skepticism shared by half of all teens and some Meta staff. Even John Carmack has been expressing caution over these ambitions.

The Register reports that Canalys is in the naysayers' camp. At the company's Channels Forum in Barcelona, Matthew Ball, chief analyst at the company, asked, "Is the metaverse the next digital frontier or an overhyped money pit?"

"Tens of billions of dollars have already been invested, costs and delays to Meta's own progress is a barometer."

Ball made a good point about the current global economic climate's effect on the metaverse. With rising inflation and job losses, many people are struggling to make ends meet when it comes to daily living expenses like rent, food, and utilities, so investing in virtual items such as NFTs is unlikely to be a temptation.

Ball did admit that gaming is one area where the metaverse could find success, as is "adult entertainment," but the business sector will struggle.

Nevertheless, big companies such as Microsoft, Nvidia, Apple, and Google keep investing in the metaverse. Consultants estimate that $177 billion has already been plowed into the platform, and that figure could hit between $5 trillion and $13 trillion by 2030.

Rival research giant Gartner is more optimistic about the metaverse. It believes that a quarter of the world will spend at least one hour a day shopping, working, socializing, or learning in the virtual world by 2026, with 30% of organizations offering products or services in this digital landscape.

Meta revealed the Meta Quest Pro earlier this month, a $1,500 standalone headset designed for working in the metaverse. It also increased the base price of the Meta Quest 2 to $400. The Meta Quest 3 should arrive at a lower price point next year, but Meta still faces a challenge to get people interested in the metaverse, and businesses invested in the platform could suffer as a result.

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Neatfeatguy

Posts: 1,095   +2,023
I like all the images of avatars they show when Metaverse stories are posted - are you guys creating Mii characters? They look like a step just above Mii characters, something that's been out for over a dozen years or more.

Who the hell is going to waste their time in this stupid place?

Maybe stupid Zuckerburgerman can convince Elon to come by and help back an overrated and overpriced platform so it can be saved so two morons can be bled dry of their money. While they're at it, get Bill Gates in on it too and take him down as well.
 
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Puiu

Posts: 5,959   +5,006
TechSpot Elite
No they won't close simply because the Quest 3 (2023) and future Quest 4(2024/2025) will drive a lot of sales of VR headsets. The market will continue to steadily grow.
 

Theinsanegamer

Posts: 3,959   +7,014
The metaverse is a good ideay, BUT currently we do not have the technology to make it realistic. It is logging in using a PlayStation 1 (horrible).
In what way is it a good idea? Forcibly connecting unrelated products together so they can sell you random tat? I fail to see what is so good for the consumer here.
 

FuryX

Posts: 20   +24
Better not ENDUP like 3D TVs.

For example..for creating a AAA videogame like GTA 6 takes iteself 7-8 years.
Then creating a Metaverse similiar to that scale & experience might take 10+ years.
not to mention the 5G + hardware cost+ user experience that we must bear in mind.

besides I feel that Covid pandemic,War(Russia-Ukraine),EU crisis,China - taiwan problem & global inflation might push the world in technology behind by 5 -10 years.
So people wont desire to want the virtual luxury world.. Instead will be happy with what they have..(TV,smartphone,PC,Console).
 

TheRealSCDC

Posts: 500   +865
It has to be one of the single most dumb things I've ever seen and experienced. The only part of this I'll take part in is playing practical jokes on the weirdo with a VR on his head all day.
 

DSirius

Posts: 380   +801
TechSpot Elite
Well Metaverse is clearly overhyped. Still may haver a future? Metaverse can have a future rather as a niche and without any Zuckerberg-Facebook-Meta connection. Zuckerberg's Facebook-Meta corporation is so infamous for the right reasons, that peoples reject it from the start.
 

umbala

Posts: 797   +1,598
No they won't close simply because the Quest 3 (2023) and future Quest 4(2024/2025) will drive a lot of sales of VR headsets. The market will continue to steadily grow.
Yes, trust random's internet guy's opinion on this matter, because he's always right! Oh wait...
 

azicat

Posts: 179   +227
The problem with metaverse (and VR in general) is that it's currently a solution trying desperately to find a problem for mass consumption. Advocates like Zuck are framing it in the same way a drug dealer does - entice your customer base, and then lock them in. The trouble is that he's desperately scrambling to define a good reason for people to be interested and participate.

VR has plenty of potential within specialised sectors that would benefit from spatial interactions such as CAD, urban planning, and health/medical. But Zuck is treating it like the next step in growing a monetization platform in the mass market, and nothing more - as that's what truly matters for him.
 

TheRealSCDC

Posts: 500   +865
VR is good for medical training, engineering, maybe for the elderly to help with health/mental problems. Some gaming is fun.

There are uses, but limited. As for becoming a media for socializing. F'that.
 

Sathi43

Posts: 62   +81
Zuckerberg still believes the metaverse will make hundreds of billions, if not trillions, of dollars over time
Could still be true by what you mean by "over time". Certainly not in under 15 years.
 

Farkinell

Posts: 220   +369
The whole metaverse concept is just a thinly disguised cash-grab. Every single implementation I've seen so far is brazenly designed to extract either cash or data from it's users, like a hyper-monetised VR hellscape.

Hard-pass for me. I'll stick to the real world.