Is the Metaverse Technology on the Decline?

The Promising Future of the Metaverse Technology

The metaverse technology was introduced as the next big thing in technology and was hailed as an online 3D universe that integrates virtual spaces where users can interact, trade, socialize, and game. The concept was not a new one, having been introduced by Neal Stephenson in 1992 but gained popularity through social media giants like Facebook, Instagram, and WhatsApp.

Several big companies such as Microsoft, Google, Amazon, Disney, and Binance showed interest in the technology. However, the technology failed to gain ubiquity and mass adoption due to its inhibitive cost and a lack of a simple explanation for the concept. The metaverse technology is not inclusive and appeals mostly to gaming, art, and fashion which does not meet the needs of many people.

Despite this, the metaverse technology still has potential in various fields such as education, medicine, space research, and entertainment. it has a long way to go in terms of affordability, availability, and safety measures for users.

Companies Disinvest in Metaverse Technology

Several tech giants that had invested heavily in metaverse technology are rethinking their support. Mark Zuckerberg spent $36 billion on the technology but is shifting his focus and letting go of the metaverse technology due to its poor performance and losses. Disney has also discontinued its metaverse division while Microsoft has announced it’s closing its metaverse plans to focus on generative AI.

Additionally, several tech gurus who spearheaded Meta’s success have abandoned it. John Carmack who led the development of VR headsets at Meta said that he believes the project is operating at ‘half the effectiveness’ needed.

ABC News Executive Team Downsizing

Disney recently announced its decision to cut 7,000 jobs over several months as part of cost-saving measures aimed at making the company’s money-losing streaming business profitable. Among the divisions affected will be ABC News, which is expected to cut 50 positions from its unit.

The layoffs have hit senior executives hard, including the senior VP of newsgathering, the VP of talent strategy and development, and the VP of corporate communications. An executive producer who led ABC News’ investigative unit and an executive editorial producer who had been a trusted lieutenant of anchor George Stephanopoulos are also leaving.

ABC News President Kim Godwin has articulated plans for the ABC News executive team to consolidate functions under three executives: vice president of newsgathering, executive vice president, and executive editor. A smaller management team will be in charge of keeping ABC News going.

Disney Begins Layoffs to Boost Streaming Business Profitability

Disney has begun laying off 7,000 employees as part of its cost-saving measures aimed at making the company’s money-losing streaming business profitable. The layoffs will affect several major divisions including Disney Entertainment, Disney Parks, Experiences, and Products.

ESPN is not part of this round of cuts but is anticipated to be included in later rounds. Media companies have started to rein in spending when Netflix posted its first loss of subscribers in a decade in early 2022.

The first group of employees who are impacted by workforce reductions will be notified over the next four days. A second, larger round of job cuts will happen in April, with several thousand more staff reductions. The final round will start before the beginning of summer.

The layoffs were announced as part of efforts to save $5.5 billion in costs to make its streaming business profitable after losing billions on newly launched competitors like Netflix Inc.

Officials for two unions representing cast members at Walt Disney World Resorts in Orlando said “guest-facing” services would not be affected by the layoffs but many employees will unfortunately lose their jobs as a result.

Conclusion:

The metaverse technology still has potential but has yet to gain wide acceptance. Big companies like Microsoft, Google, Amazon, Disney, and Binance have shown interest in the technology in the past, but the outlook seems bleak. ABC News and Disney are restructuring their organizations due to cost-cutting measures aimed at making their businesses profitable. Unfortunately, this has led to a reduction in their workforce and the loss of many valuable employees. As these trends continue, it is unclear what the future will hold for these companies as they navigate a rapidly changing technological landscape.

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