Microsoft is scaling back its plans for the metaverse. The company has announced that it will shut down AltspaceVR, the social virtual reality platform it bought in 2017, on March 10th, 2023, as per a blog post seen by VentureBeat (via The Verge). Microsoft explained that it has chosen to concentrate on Mesh, the mixed reality platform it first unveiled in 2021 and later stated would be integrated into Teams.
“We look forward to what is to come,” Microsoft said in a statement. “We look forward to what will include our introduction of Microsoft Mesh, a new platform for connection and collaboration, starting by allowing workplaces throughout the world.” Microsoft is concentrating its VR efforts on workplace experiences in the near future, learning from and working with its early clients and partners, while making sure to create a foundation that supports security, trust, and compliance. The company intends to eventually include customer experiences as well.
After announcing that it would fire 10,000 workers through the end of March, Microsoft announced the shutdown. Windows Central reports that as part of the reorganization, Microsoft intends to eliminate the entire AltspaceVR team. According to Bloomberg, the company has also reduced the size of its HoloLens team’s workforce. The division has had several changes in the past year, including the resignation of the division’s former chief Alex Kipman, who departed Microsoft in June following allegations of sexual misconduct, and the suspension of a contract with the US military. Microsoft apparently gave up on its ambitions for a new HoloLens gadget in 2022 as well.
