Disney exits the metaverse: what does this mean for web3 marketing?

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Major brands and media platforms are pulling back, leaving advertisers wondering what went wrong. Disney is still eyeing the technology, but its metaverse strategy has hit a wall.

Disney made a U-turn on its metaverse strategy this week, laying off the top tech team that previous CEO Bob Chapek built last year. The Mouse House, like so many companies, is shifting its priorities away from risky bets on extended reality and focusing more on its core products of streaming video, parks and movies amid a strained economy.

The move makes Walt Disney Co. the latest major media canada whatsapp data company to distance itself from the metaverse, leaving the advertising world wondering what comes next and what went wrong. The withdrawal is another blow to the initial optimism, which some have called marketing hype, that fueled interest in Web3 over the past two years.

Metaverse , like NFTs and cryptocurrency, has become a dirty word in some circles. The spectacular collapse of crypto exchange FTX exposed the unregulated nature of cryptocurrencies. NFTs, the digital assets powered by crypto payments, have been plagued by frequent scams and questionable utility. And the metaverse, despite all the attention it received when Meta rebranded itself from Facebook in 2021, has never fully taken off.

Metaverse CEO Mark Zuckerberg recently announced that 2023 would be a “year of efficiency,” and the company has had to assure investors that fancy projects won’t detract from its core business. Metaverse has also undergone significant layoffs. And in February, Microsoft cut its metaverse team as part of a round of layoffs.