Entertainment conglomerate Walt Disney Co. has reportedly scrapped its metaverse plans
According to an internal memo viewed by multiple media sites, Walt Disney Co. has shelved its metaverse plans as part of its decision to lay off 7,000 people and cut $5.5 billion in spending.
The layoffs are spread throughout the company, according to Disney Chief Executive Bob Iger
Walt Disney reportedly scraps metaverse plans
According to the Wall Street Journal, Disney’s metaverse section employed roughly 50 workers, all of whom will lose their jobs save the division’s chief Mike White. The Metaverse is a virtual world in which people can appear as avatars. Blockchain, the underlying technology of cryptocurrencies, has the potential to bring a financial layer to these virtual worlds. Virtual reality headsets can be used to enter some metaverses.
Technological businesses encounter difficulties with metaverse initiatives, such as increased equipment costs and restricted involvement.
In December, Mark Zuckerberg, CEO of Meta Platforms Inc., the parent firm of social media giants Facebook and Instagram, expressed optimism about the metaverse’s future. However, Reality Labs, the company’s metaverse subsidiary that develops virtual reality technologies, lost $13.7 billion in 2022, up from $10.2 billion in 2021.
Despite the difficulties in mass adoption, South Korea announced plans to invest over $21 million in new initiatives to utilize metaverse technology for public services. At the same time, Japanese corporations signed an agreement to establish a metaverse economic zone.
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