In a bold move in late 2021, Facebook underwent a transformative name change to Meta, signifying a substantial shift towards the concept of a metaverse.
The Meta metaverse, specifically labeled as Horizon, offers access through the Meta Quest 2 VR headset. Acquiring this headset comes at a cost of $399, yet the usage of Horizon itself is currently free, although trials of in-app purchases are underway.
Horizon originated as a social virtual reality app, initially introduced through a closed alpha test version in 2020.
However, the name change to Meta stirred up unexpected controversy instead of passing unnoticed, as Meta’s CTO Andrew Bosworth had initially anticipated.
By May 2023, skepticism surrounding the metaverse had grown prominent, with Ed Zitron declaring its demise in an Insider obituary, noting it had been “abandoned by the business world.” Similar sentiments have been echoed by others, including Phil Libin, former CEO of Evernote, who criticized Horizon for its limited appeal and antiquated nature.
Meta’s journey into the metaverse has been tumultuous. The company experienced a notable stock price plummet of over 20% in February 2022, incurring a $10 billion loss. This turbulence also impacted its user base, leading to a reduction of roughly a million daily active users. The aftermath of these challenges was felt in extensive layoffs, involving around 11,000 employees in November 2022, followed by subsequent waves in March and May 2023.
The journey into the metaverse has been marred by issues including sexual harassment claims and struggles in retaining users. Efforts to address these concerns led to the implementation of a “Personal Boundary” feature in response to virtual harassment reports, creating a safety bubble around avatars.
Horizon grappled with user retention difficulties, with users encountering glitches and virtual worlds often lacking fellow users. Meta acknowledged these problems, imposing a “quality lockdown” on Horizon for the rest of 2022 to focus on bug fixes. However, the company’s dedication to the metaverse remained steadfast, with plans to invest billions more following an already substantial expenditure of $36 billion by October 2022, drawing mixed reactions from investors.
The Meta Quest Pro, a premium VR headset, received mixed reviews. It was deemed “undeniably cool,” yet the weight of the device left some users relieved to remove it after short usage periods.
In contrast, Zuckerberg views the metaverse as a “very long-term bet.” He acknowledged the uncertainty of its success while asserting its alignment with the evolving global direction.
Despite Meta’s financial challenges and the term’s ambiguity, Wall Street remained relatively supportive following Zuckerberg’s commitment to the metaverse on an earnings call.
Apple’s entry into the metaverse arena introduced a mixed-reality headset, the Vision Pro. Interestingly, Apple avoided the term “metaverse,” opting for “spatial computing” instead. This subtle shift could be attributed to consumer unfamiliarity with the term.
Meta’s CTO, Andrew Bosworth, drew parallels between the metaverse’s undefined nature and the early stages of the internet, highlighting that despite ambiguity, the practical usage of such concepts remains clear.
