Microsoft Closed Internal Metaverse Team to Focus on ChatGPT

Urian B., Tech Times 17 February 2023, 08:02 pm

When Microsoft first introduced its Industrial Metaverse Core in October 2022, it hoped to provide clients with an operating system that could manage a variety of industrial robots and other equipment.

Failure of Microsoft's Industrial Metaverse Team After Four Months

According to the story by Giz China, the team included two of Bonsai's former leaders and had already released a free trial version on Azure. Yet four months later, Microsoft had to let go of the entire team.

Microsoft's foray into the emerging and ever-evolving field of metaverse technology took a major hit in early 2022 when the company eliminated its Industrial Metaverse team, leaving the initiative dead in the water after only four months.

Microsoft Shifts Focus from VR to Work-Related Applications

The team focused on aiding clients in creating operating systems to manage industrial robots, equipment, and processes, using AI and Microsoft's Azure platform. This decision follows the closure of AltspaceVR, one of the earliest social virtual reality platforms Microsoft acquired in 2017 to prevent it from closing its doors for financial reasons. Per XR Today, Altspace VR is expected to close its service on March 10, 2023.

However, the company shifted its focus away from VR towards work-related applications, which led to widespread layoffs within the HoloLens team. Winnowing down its metaverse projects didn't come out of anywhere.

The Uncomfortable Financial Situation of Microsoft's Industrial Partners

Microsoft had been working hard to build partnerships with a range of corporate clients to use Industrial Metaverse, including Coca-Cola, Unilever, Anheuser-Busch InBev, General Motors, and Mexican food producer Grupo Bimbo.

Hence, the decision to scrap this project was borne out of necessity, most likely for financial reasons, as the company likely found itself in an uncomfortable situation with the industrial partners.

Microsoft Continues to Pursue Metaverse Technology Despite Discontinuing the Mesh Team

Why exactly Microsoft decided to discontinue the team remains unclear, but what's certain is that the company still views metaverse technology as a major area of interest. The fact that the Microsoft Mesh trial is still running after its debut in 2021, with potential applications in the enterprise space, shows that Microsoft isn't walking away from its metaverse dream altogether.

Such a move is also understandable, as Microsoft recognizes the potential of metaverse technology, which is expected to greatly benefit fields such as industrial automation, remote cooperation, and consumer entertainment, as noted in an article by IT Home.

Microsoft Still Believes in the Possibilities of the Metaverse

In any case, Microsoft's decision to halt its Industrial Metaverse team after only four months shows that the company acknowledges that, without clear-cut economic reasoning and drive, it won't be successful in an area like a metaverse.

Despite the failure and layoffs, Microsoft's CEO Satya Nadella still believes that HoloLens has a place in the metaverse space and will continue to believe in its potential to add value to enterprises and consumers. To that extent, Microsoft is well-positioned to capitalize on the possibilities of the metaverse in the coming times.