Disney reportedly terminates its metaverse-oriented operations

It’s believed that around 50 concerned members won’t get a new employment contract

Going by Disney’s official website, it’s an American entertainment company
Going by Disney’s official website, it’s an American entertainment company

According to Disney’s extended restructuring plan, it has dropped its metaverse division, stated Cointelegraph. Reportedly, Disney will also fire 7,000 staff and cut its operating costs by $5.5 billion over two months.

It’s believed that the update was reported by Wall Street Journal, based on “people familiar with the matter.“ The publication also mentioned that except Michael White, head, broader consumer-products unit, around 50 members of the metaverse division will not get a new employment contract.

“Disney has abandoned a plan to develop its own membership program like Amazon Prime, according to @RWhelanWSJ. Disney has also eliminated the division that was developing metaverse strategies, according to the report,” Scott Gustin, news and product guy, Nexstar, tweeted. 

As reported by Cointelegraph, Disney created its metaverse division in February, 2022, to increase audience engagement. On December 28, 2021, the company patented a “virtual-world simulator” that would assist the augmented reality (AR) features in its theme parks, mentioned Cointelegraph. Sources suggest that two factors which led to this decision are increased competition and opposing economical conditions associated with the streaming sector.

Reportedly, Bob Chapek, former chief executive, Disney, and Robert Iger, current chief executive, Disney, once saw metaverse as a promising investment opportunity. In relation to the present situation, Disney declined to comment, concluded Cointelegraph.  

(With insights from Cointelegraph)

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First published on: 28-03-2023 at 17:08 IST