By Tolga Yanik
ISTANBUL (AA) – Land prices in the metaverse plummeted due to declining interest, as average plot prices on the Sandbox game fell from $15,000 to $1,500, down 90%.
Metaverse is defined as virtual worlds which one can participate in through augmented reality (AR) and virtual reality (VR) technologies.
Ad revenues in the metaverse also fell short of expectations, and brands reduced their investments consequently.
Meta, which was Facebook at the time, bought Oculus VR in 2014, accelerating the popularity of the technology and investments in VR, and the Pokemon GO, the AR game where people caught pocket monsters called Pokemon all over the world, was launched in 2016.
Facebook’s acquisition of Oculus VR and Pokemon GO’s popularity laid the foundation for the surge in virtual worlds, as Facebook renamed itself to Meta in 2021, signaling its commitment to the metaverse, while Microsoft focused on business and social interactions within the metaverse on a platform called Mesh.
The metaverse attracted users as well as investors, with virtual land sales on platforms such as Sandbox and Decentraland reaching millions of dollars, as a plot of virtual land was sold for $2.4 million on the latter platform.
Some of the world’s leading brands opened virtual stores in the metaverse, while billboards, product replacements, and brand events were organized in these pixel worlds.
Despite the metaverse craze, the interest died down over time due to the technological infrastructure required for its functional use was not adequate, as the need for higher bandwidth connections, powerful computers, and advanced AR and VR devices affected the user experience.
Additionally, limited possibilities for social interactions hindered experiences, leading to declined interest, while global economic uncertainties and waning investor interest resulted in investment losses in the metaverse.
The virtual world technology seems to still have a potential, as tech gians such as Google and Apple continue their investments.
*Writing by Emir Yildirim