End of metaverse era: Why technology failed to gain popularity

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End of metaverse era

What is the metaverse?

The metaverse is a virtual world where users can interact, work, learn, and entertain themselves through digital avatars. The term was first introduced by American author Neal Stephenson in his 1992 science fiction novel Snow Crash.

In the book, the metaverse is described as a virtual reality where people can travel, trade, and communicate. Over time, this idea inspired developers to create technologies that brought this concept closer to reality.

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The metaverse gained widespread attention in 2021, when Facebook rebranded as Meta and introduced Horizon Worlds, a platform for creating and interacting in virtual worlds via VR. This move gave the industry a major boost, prompting Microsoft, Nvidia, Epic Games, and other tech giants to invest heavily in virtual reality development.

The peak of metaverse popularity

In the summer of 2022, Oxford University Press named “metaverse” one of the most popular words of the year. For the first time, public voting determined the selection, making it a strong reflection of global interest.

Usage of the term reportedly increased fourfold, largely due to the crypto community.

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Throughout 2022, numerous companies and cities around the world launched their own metaverse projects or announced plans to do so. For instance, Ford, one of the world’s largest car manufacturers, filed multiple trademark applications for metaverse-related products.

Other examples include:

- Playboy, which announced its MetaMansion metaverse project.

- Seoul, which introduced a government-backed city metaverse.

- Puma, which launched Black Station, a digital fashion hub featuring virtual sneakers.

- Interpol, which unveiled the first global police metaverse.

The list of metaverse projects seemed endless—until interest in the trend began to decline.

Metaverse struggles and project shutdowns

By 2023, enthusiasm for the metaverse had noticeably waned. It became clear that many projects were failing to meet expectations: user engagement was low, VR equipment remained expensive, and technical limitations created barriers to mass adoption.

As a result Microsoft shut down its Industrial Metaverse division. Meta significantly reduced funding for Horizon Worlds. Blockchain-based metaverses, such as Decentraland and The Sandbox, struggled with declining user activity and falling virtual land prices. Many smaller projects were completely abandoned.

With companies no longer seeing substantial economic potential in the metaverse, investor interest shifted towards artificial intelligence (AI), which quickly emerged as a far more practical and profitable field.

The harsh reality

Once considered revolutionary, the metaverse has now been overshadowed by more promising technologies. The idea of virtual worlds has faced major challenges, including expensive hardware, technical constraints, and a lack of user engagement, leading major corporations to pivot away from the concept. Microsoft, Meta, and other tech giants have reprioritized their efforts, while investors have turned their focus to AI, Web3, and other emerging innovations that offer greater real-world applications.

Against this backdrop, Donald Trump’s attempt to create his own metaverse appears outdated and unlikely to succeed. The majority of the industry has already abandoned the idea, and it’s doubtful that a Trump-themed virtual world will revive a fading trend.

Although metaverses still exist, their time as a mainstream phenomenon is over. The world is now moving toward generative AI, decentralized applications, and more practical solutions, leaving the metaverse as a niche concept with little long-term potential.

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