Metaverse has reportedly stopped pitching advertisers about Metaverse and instead started focusing on short videos and AI tools. Separately, his one advertiser, who has spent hundreds of millions of dollars on Meta, says it offers very large discounts that are “abnormally large.”
No More Metaverse Pitching
Various reports suggest that Metaverse has stopped pitching about it, as well as campaigns promoting it. The company is reportedly starting to shift focus from the Metaverse to his AI tools, reels, and short-term video products.
By laying off 20,000 employees, Meta is observing a “year of efficiency” and the shift to promoting such products instead of Metaverse is consistent with it. The Reality Labs division assigned to develop the Metaverse is facing extreme financial pressure despite Mark Zuckerberg’s previous commitments.
In addition to promoting short-form videos, Meta showcases tools like Advantage+, which uses machine learning to serve targeted ads. Meta is also investing in generative AI to help with marketing campaigns. All these investments could mean short-term gains for the company, which is currently facing financial difficulties.
In a recent layoff round, Zuckerberg mentioned more than 2,000 words in the memo and said AI development was the company’s “single biggest investment” while not mentioning the Metaverse twice. rice field. Not only this, but in his discussion of Meta’s full-year earnings in February, executives mentioned his AI six times, but not once did he mention the Metaverse.
Collapse of the Metaverse
The department responsible for developing the Metaverse strategy has been shut down by Walt Disney. The next-gen storytelling and consumer experience team of 50 people will be shut down, leading to the closure of larger structures and the loss of 7,000 jobs over the next two months.
According to The Wall Street Journal, the Metaverse division “was tasked with finding ways to tell interactive stories in new technological forms using Disney’s vast intellectual property library.”Disney’s Metaverse Development Includes Patented Virtual Theme Park Technology
Meanwhile, the European Union is awaiting feedback on its proposal to develop regulations to better manage virtual worlds like the Metaverse. Following a World Economic Forum article last month, EU Antitrust Director Margrethe Vestager questioned greater regulatory oversight of the Metaverse. The Commission also issued a Request for Evidence asking what the Metaverse Act should look like.
“A few large companies risk becoming the future gatekeepers of the virtual world, creating barriers to market entry and crowding out EU start-ups and SMEs. [small and medium-sized enterprises] from this emerging market,” warns the document.
summary
From increased speculation from Europe to ignorance by Meta’s own company management, the Metaverse is now in a tough spot. Metaverse growth will be difficult with cost-effective solutions in the Year of Efficiency.
