The year when technology was fashionable and Fundeu highlighted artificial intelligence as the pivotal theme for 2022 stirred questions about the metaverse. Meta faced a staggering setback, reporting billions in losses and revealing plans to cut more than 11,000 jobs. Initiatives like the European Union’s virtual reality platform stumbled, while activity on major servers such as Sandbox and Decentraland appeared muted. All of this pointed to a potential turning point for the market, with JP Morgan having forecast a value rise in February, pegging it near a trillion euros.
Big brands like Disney, Burberry, Louis Vuitton, Nike, Microsoft, and Gucci ventured into this space, hoping to seize the opportunity. Yet consumer interest seemed to cool at times, not always rising in tandem. An IDC year-end study noted a 12.8% drop in worldwide virtual reality headset sales compared to 2021.
“At first we cheered the metaverse, then attention cooled,” remarked Antonio Ortiz, a creator and analyst of Error500, who regularly speaks with EL PERIÓDICO DE ESPAÑA from the Prensa Ibérica group. He described the year as disappointing, criticizing the early metaverse vision as overly simplistic. While virtual reality hardware continues to evolve, the experience still falls short of satisfying expectations.
The first version of Mark Zuckerberg’s selfie-taking avatar remains a symbol of the era’s early attempts. It shed light on the challenge: technology advanced, but the user experience often lagged behind, failing to deliver real immersion. Some insiders argued that progress lagged because the market struggled to connect the hardware with a compelling business model.
“It’s been a tough year, but it wasn’t surprising. Technologically, real breakthroughs are slow to arrive, and popular games like Roblox and Fortnite offered more immediate appeal with simple graphics and minimal immersion. Meta’s strategy to launch without full integration left users with a chilly, unengaging experience.”
Others called for more time within the industry to foster both the necessary tech and the right economic framework. The debate continued about whether the metaverse could recover. Edgar Martín-Blas, founder of Virtual Voyagers, highlighted that progress in metadata repositories and practical applications was visible, even if the broader market doubts persisted. He emphasized that real momentum comes from tangible use cases rather than headlines.
“When examining Meta’s approach, it’s tempting to focus on the company’s large-scale efforts while overlooking the practical deployments that show what works. This year’s data invites a sober look at how next steps must be grounded in solid user value.”
Meta’s 2022 Struggles and the Metaverse’s Trajectory
Meta, once known as Facebook, invested heavily in the metaverse, directing a sizable slice of its resources to the development arm. After the rebranding to reflect the focus on the metaverse, the results didn’t meet expectations. In mid-year, revenue declined year over year, with net income dropping significantly. Through the year, the company faced heavy losses and underwent major restructuring.
Despite setbacks, Meta signaled continued commitment to virtual reality in the following year, framing it as a long-term bet. Analysts noted the risk of short-term losses against a decade-long horizon. Opinions differed; some saw a market pivot as necessary, while others warned about the volatility of early-stage adoption. Industry observers urged a balanced view of the hype and the practical milestones needed to sustain long-term growth.
The aftermath extended to other metaverse projects. Horizon Worlds and the broader ecosystems faced underwhelming engagement. Data from leading platforms indicated user activity remained below expectations, and enterprise pilots faced uneven uptake. Meanwhile, the European Union introduced a Global Gateway concept, aiming to offer a shared virtual space for citizens. Early demonstrations showed a gap between ambition and real-world usability, with audience attendance and avatar performance highlighting the early-stage nature of these ventures.
Overall, 2022 painted a picture of a market in transition. The sector still attracted attention from major players and brands, yet the path to wide-scale, durable adoption remained uncertain. The year underscored the need for a clear value proposition, better user experiences, and scalable business models that could convert interest into sustained usage.