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Microsoft ditches its Metaverse business in favor of AI

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Microsoft is taking an exit from the industrial metaverse market. Reports show that the firm has dropped its metaverse-focused team, made up of 100 persons. The people were relieved of their roles when Microsoft dismissed 10,000 of its workers last month.

Microsoft took its first move into the metaverse in 2021 after Facebook rebranded to Meta. The company previously led by Bill Gates announced 3D avatars and immersive virtual environments for meetings as well as other virtual reality products in view.

A few months after the virtual meeting announcement, it made a bid and bought Activision Blizzard for $69 billion. Speaking about the acquisition, Microsoft CEO and chairman Satya Nadella said that the company was taking a stand to prepare for the development of metaverse platforms that will be driven by gaming projects. 

Barely after eight months of buying Activision Blizzard, the industrial metaverse group was created to develop products that will bring metaverse experience to industries.

Facebook lost billions; Microsoft and ChatGPT

After investing in the development of the metaverse via Reality Labs in 2022, Meta recorded a loss of $13.7 billion. This resulted in several backlashes from the market on how investors were not in tune with the vision cast by the CEO of Meta. And despite this loss, Meta planned to dedicate 20% of its expenses in 2023 to Reality Labs for further development in the metaverse.

Alternatively, Microsoft has pivoted into AI with the super-electrifying global response ChatGPT got as 2023 opened up. In the first week of February, Microsoft announced the integration of ChatGPT with its search engine, Bing. There are plans to also relaunch its browser, Edge with AI integrations for users.

The CEO of Microsoft explained that the company’s move into AI is important as artificial intelligence will change every aspect of software, especially search products.

Read also;

Microsoft is positioning in the metaverse with new products

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