Disney has recently announced that it’s shutting down its metaverse division as part of a restructuring plan aimed at cutting costs and laying off employees. The decision has raised some concerns about the future of the metaverse, given that Disney is a major player in the entertainment industry.
The metaverse division was established in February 2022 to investigate new ways for Disney audiences to interact with their favorite stories. The division had about 50 members, but unfortunately, none of them will be receiving new employment contracts except for Michael White, who led the consumer products unit.
Disney has been a big supporter of the metaverse, with both its former and current chief executives considering it a good investment opportunity. Chapek, the current CEO, has called the metaverse “the next great storytelling frontier,” while Iger, the former CEO, even worked as an advisor for Genies, a digital avatar platform running on Dapper Labs’ Flow blockchain.
Disney’s decision to dissolve the metaverse division came after they consulted with McKinsey & Company, a management consulting firm, to find ways to cut costs. They cited unfavorable economic conditions and increasing competition in the streaming sector as reasons for the downsizing.
While some people are worried about what this means for the future of the metaverse, it’s important to remember that the metaverse is still a relatively new technology. It’s gaining popularity, and many companies are investing in it to create new experiences for their audiences.
Even though Disney’s decision to shut down its metaverse division seems like a setback, it’s unlikely to slow down the adoption of the technology. The metaverse is here to stay, and companies that invest in it are likely to reap the benefits in the future.
While Disney’s decision to dissolve its metaverse division is noteworthy, it’s not the end of the world for the metaverse. It’s still early days for this technology, and we can expect to see many more companies invest in it and help shape the future of entertainment.