Metaverse could experience a ‘winter’ at beginning of 2023

‘Metaverse’ was the buzzword for 2022, appearing in nearly every established brand’s marketing strategy and causing an eruption of digital fashion collections and events to grace the industry as a whole.

However, as 2023 begins to unravel, the development of this digital space could actually be slowing down, as it potentially fails to live up to the hype it has garnered in past months.

According to a new report by GlobalData, waning consumer interest in the metaverse could be the direct cause of such a hindrance, with the analytics company stating that the concept “will experience a winter” in the new year.

The firm said that the immaturity of technologies such as virtual reality (VR) and artificial intelligence (AI), as well as a lack of consumer interest, could prevent the metaverse from being widely adopted in 2023.

The prediction was made by William Tyson, GlobalData’s associate analyst in the Thematic Intelligence team, who stated that the absence of a “single vision” is resulting in an uncertain future for the metaverse.

Tyson added: “Its extraordinary long-term potential is widely recognised, which is why Big Tech is continuing to funnel billions into its creation – despite the absence of short-term return on investment.

“The technology will experience a cold period, but this provides an opportunity for underlying technologies to develop.”

Tyson further predicted China would be leading the way in its development, with the country’s investments set to outpace the West.

While companies in the region will likely have to follow the government’s regulations, Tyson noted that those involved will actually benefit from policies and subsidies as they attempt to innovate.

He continued: “This is a luxury that Western governments would find difficult to justify at this early stage of the metaverse and in the current macroeconomic climate.”