Disney Corporation has recently closed its Metaverse division as part of a wider restructuring plan. The company aims to reduce operating costs by $5.5 billion and cut 7,000 jobs within the next two months.
Reports suggest that the Metaverse Research Department, which employed approximately 50 people, has been liquidated. This division was initially created in February 2022 with the goal of developing new ways to engage with audiences.
In December 2021, Disney patented a “virtual world simulator” designed to link augmented reality rides at their theme parks. The multimedia giant had also explored using the metaverse in sports betting, but this idea never came to fruition.
The decision to cut costs and reduce headcount was made after consulting with McKinsey & Company. Factors such as unfavorable economic conditions and increased competition within the multimedia sector were the primary reasons behind this move.
However, former and current Disney executives, Bob Chapek and Robert Iger, view the metaverse as a potentially lucrative investment opportunity. This is evidenced by the company’s recent job opening for a lawyer with expertise in blockchain, non-fungible tokens (NFTs), and decentralized finance (DeFi).
It is worth noting that Meta, formerly known as Facebook, also reported significant losses for its Reality Labs division in 2022, amounting to $13.7 billion. Despite this setback, Meta has not altered its strategy for developing metaverses.