There are enough reasons to explain why Metaverse will fail. Here are the top 10
Metaverse is said to be the next inflection point in the digital world, it is at its crossroads. Touted as Web 3.0 with the promise of virtual reality experience as the main proposition, now struggling to stop the fall. And this is before it can even begin. Since the stock was reviewed, it has lost nearly $18 billion in its Reality Labs segment on revenue of more than $4 billion. For many reasons it has proven to be an overrated concept with most users losing interest in the Meta concept. According to a recent WSJ article, Meta’s Horizon World is hardly gaining any consumer interest. Most of the users do not come back to the virtual world after a month and hence the user base increases. The reason is beyond its backwardness or Mark Zuckerberg’s bravery in promoting it as an inevitable futuristic technology. Here are the top 10 reasons why Metaverse will fail.
There is no consensus on what it is
Metaverse, currently not an exclusive project from Meta. But that way of trying to create an impression only harms the company. It was already here before Zuckerberg’s ‘brainwave’. It is much more than an activated reality and a connected virtual world.
Lack of public interest
The latest State of Digital Customer Experience report from CMSWire states that 42% of organizations have no apparent interest or are considering Metaverse at all and a further 39% have adopted a ‘wait and see’ attitude.
Metaverse lacks maturity
The VR and AR aspect clearly lacks maturity as demonstrated by Mark’s recent announcement, ‘Meta has been able to develop legs for his avatar’. The legs are actually animated in the demo. And also the requirement of a VR headset to be in the Meta in accordance with the convenience factor.
Big tech collaboration needed
For Metaverse to become a single immersive environment, it will require collaboration between companies like Meta, Alpha, Microsoft, Apple and Amazon. Metaverse is still only a commercial opportunity for these companies, it may create several different environments for different users.
Stagnant user growth
With user growth skyrocketing, the company had to be content with modest gains in new users across its family of apps, including Instagram, Messenger, and WhatsApp. Facebook, the core networking app, has lost about a million users by the end of the year.
VR is hyped
When Mark reinvented Metaverse VR, it manifested itself in a number of amazing ways. It’s just that they turned out to be the equivalent of online video games like BeatSaber or Betamax video.
Understanding the Meta or rather where the trend is currently going is a puzzle for investors. More so when losing a senior executive like Sheryl Sandberg. There is a lack of paybacks in the short term and with the recession looming, investors are reluctant to put in more.
Apple privacy barriers
Apple recently introduced a Transparency Tracking App update, letting iPhone users choose to let Facebook monitor their online activity. It would hurt Meta’s business badly in terms of having access to user behavior.
Google is eating into its ad revenue
Unlike Meta, Google is not heavily dependent on Apple for user data. mr. Wehner said it appears Google has “more third-party data for measurement and optimization purposes” than the Meta ad platform. Therefore most advertisers began shifting to the Google platform.
Competition from Tik Tok
Tik Tok assembles the same metaverse hardware, content, software and platform lineup as Meta. Its venture into Blockchain and VR sent an alarm signal to Meta so that Meta’s CEO asked his employees to make his new pivot.