Disney has abandoned its planned Web3 narrative experience in the metaverse industry, in order to minimize costs during challenging times.
Although many predict that metaverse initiatives will take off in 2023, the latest major victim of the industry is Disney. In order to minimize costs during these challenging times, the widely recognized brand is retreating from its planned Web3 narrative experience.
Disney said on Tuesday, March 28, that it will let 7,000 workers go over the next two months. The company’s running costs would be reduced by $5.5 billion thanks to the suggested firing round.
The 50-person Disney metaverse strategy team also suffered. According to former CEO Bob Chapek, The Magic Kingdom wanted to “establish a whole new paradigm” for how audiences viewed and interacted with their stories.
The choice was motivated by the global economic problems facing corporations. McKinsey & Co., Disney’s advisors, said that the wisest course of action going ahead would be to fire people.
Former Disney consumer goods executive Michael White led the strategy team that came up with creative approaches to telling interactive stories with Disney’s wide range of intellectual property. White reportedly will continue working for Disney in an unnamed capacity, while the other members of the group reportedly won’t.
Bob Chapek founded Disney’s metaverse business in February 2022, calling it “the next great storytelling frontier.” The crypto market’s poor performance that year halted the division’s progress.
Not all hope is lost, though, as there is a good chance that the business may again use the metaverse for storytelling in the future.
There is still hope
Disney’s return to the metaverse is still a possibility, despite its decision to shut down its metaverse division. Given that it obtained a patent for a “virtual-world simulator” in December 2021, the business might revive the metaverse.
The media conglomerate wanted to offer augmented reality (AR) rides at amusement parks without using a headset.
Disney is now run by a new CEO, although Robert Iger is bullish about the metaverse market. The CEO of Genies Inc., a Web3 firm that develops avatars for the metaverse, has invested in the company and joined the board.
On the other hand – As a result of Meta’s restructuring, 11,000 workers were let go on March 14. Many of the company’s projects, including the NFTs for Facebook and Instagram, were shelved.
US federal regulators, according to law firm Cooper & Kirk, are allegedly waging war against the cryptocurrency industry by threatening to debank companies.
Disney’s move to Web3 may have spurred industry acceptance. Yet, other major companies may follow the company’s exit, affecting the entire sector.