The Metaverse is dead. Well, sort of. Do you remember the fall of 2021 when Mark Zuckerberg declared that the company then called Facebook, Inc. would be moving away from social media to become a Metaverse-first company? He even changed the name to Meta to reflect this fact. Well, almost five years later, and after spending billions and billions of dollars, Meta is still very much a social media company, though it is investing huge amounts in AI. The Metaverse? Well, it’s effectively shuttered.
So, where did it all go wrong? You can argue that there were a few reasons that the Metaverse, at least the version trumpeted by Zuckerberg, never took off. There is still room for VR and AR in tech’s future. Indeed, Meta has had lots of success with its Ray-Ban smart glasses, but this is a lite version of augmented reality. Regardless, we wanted to parse out some reasons why we aren’t all working, playing and socializing in the Metaverse nearly five years after we were told we would be:
The Timing Was Key
There’s been lots written about what went wrong with the Metaverse project, but we think that sentiment also played a role. In October 2021, we were all still dealing with COVID-19, social distancing, and, in some cases, lockdowns. Everything was being done virtually – the hot stocks were companies like Zoom and Peloton – so it ‘felt’ like more virtual was a good idea. Yet, after the pandemic, it became clear everyone wanted to reconnect physically. Look at the backlash against WFH culture, for example.
The Use Cases Weren’t There
There are loads of use cases for VR entertainment. Moreover, there still are, and we could see social gaming experiences, particularly online casino gaming, having a big future with VR. Yet, all the promised use cases – that doctors were going to be meeting us in the Metaverse for appointments, that we would be going to virtual malls to try on clothes before we bought them – none of that was executed well enough. Moreover, you could see your doctor over a Zoom call, if not in person. Was there really a need to meet in some virtual setting?
The Comfort Factor
The Apple Vision Pro has been a rare disaster for a company that rarely misses with tech products. Yes, it is not essentially the Metaverse, but the issues with Vision Pro are universal – it’s uncomfortable and cumbersome. People simply do not want to socialize with a computer strapped to their face. And while Meta has had some success with Oculus/Quest in gaming, the full immersion still means you have to wear a headset. It rarely feels pleasant. You can see why Meta is focusing on glasses. Apple, too, has recalibrated and is set to release smart glasses to rival Meta soon.
People Crave Real Contact
If you saw the recent footage from Coachella 2026 – yes, there’s a lot of posing going on – but festivals like that show what people, especially young people, to whom technology like the Metaverse is marketed, really want: Shared experiences and contact with other people. It’s just not the same virtually. Your grandparents may have gone to Woodstock. Are you going to tell your grandkids how awesome it was to watch a festival remotely?
The Rise of AI
We aren’t saying that Mark Zuckerberg became bored of the Metaverse, but let’s just say that the explosion of AI technology, particularly after ChatGPT was released to the public, caused hysteria among Big Tech companies. Everyone pivoted to AI, seemingly overnight. And while Meta persevered with the idea for a few years, resources were obviously being directed elsewhere. AI is now the prize for Meta, so it might want to consider yet another name change.
