Is Metaverse Dead? The State of Virtual Worlds in 2025

The metaverse was once seen as the future of the Internet, offering virtual worlds where people could work, socialize, and have fun. Big tech companies, such as Meta and Microsoft, have invested heavily in the metaverse, generating much buzz.

But now, in 2025, the metaverse is losing steam. Interest has faded, funding has slowed down, and fewer people use it.

So, is the metaverse dead? Well, the metaverse market is expected to reach $103.6 billion in 2025 and $507.8 billion by 2030. Therefore, maybe the reports of its death have been greatly exaggerated.

In this article, we look at what happened to the metaverse, what’s still working, and what the future might hold for virtual worlds.

Table of Contents Table of Contents

1. Key Takeaways
2. What Happened to the Metaverse?
3. Metaverse in 2025: Top 5 Virtual World Projects
4. The Future of the Metaverse
5. The Bottom Line
6. FAQs
7. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. What Happened to the Metaverse?
3. Metaverse in 2025: Top 5 Virtual World Projects
Show Full Guide
4. The Future of the Metaverse
5. The Bottom Line
6. FAQs
7. References

What Happened to the Metaverse?

The potential for a metaverse failure shows that big ideas need to be useful and interesting to people to succeed.

According to a recent memo leaked to Business Insider, Andrew Bosworth, Chief Technology Officer at Meta, considers 2025 a make-it-or-break-it year for the company’s metaverse initiative, which threatens to become a “legendary misadventure,” if Meta fails to boost sales, user retention, and engagement.

However, the metaverse isn’t quite dead – yet; it’s evolving, according to Beautyque NYC founder Sonia Khemiri, an expert and technology founder in AI/AR/VR and retail. She told Techopedia:

“The initial hype in the early 2020s came with unrealistic expectations for rapid adoption and sweeping change. What we’re seeing now is a recalibration. The vision of interconnected virtual worlds has hit some roadblocks, particularly with hardware that’s still clunky and expensive and software that hasn’t yet delivered the seamless, immersive experiences we hoped for.”

But that doesn’t mean progress has stopped. Instead, various industries, including retail, beauty, and fashion, are finding practical ways to incorporate metaverse technologies into their businesses, Sonia Khemiri said. And these efforts are setting the stage for what’s next.

Additionally, economic challenges and changing priorities, such as the fast growth of generative AI, have shifted focus and funding away from metaverse projects, Bob Hutchins, an organizational psychologist and AI expert, said.

Many companies have scaled back their ambitions and are now focusing on incremental developments, such as augmented reality and virtual reality applications, instead of building massive virtual worlds.

“However, several platforms, for example, Roblox, Decentraland, and Meta’s Horizon Worlds, continue to grow and refine their offerings, particularly in niche areas like gaming, virtual events, and social interaction,” Hutchins says.

Jason Coley, director of the Center for Academic Innovation at Maria College, agreed that the metaverse focus has shifted from broad, abstract promises to more tangible, practical applications.

“In education and healthcare, for example, we are using VR to create impactful, specific experiences that directly benefit students and professionals – things like immersive nursing labs, occupational therapy training, and remote collaboration experiences,” Coley told Techopedia.

“I think that this reflects a larger trend: organizations are finding value in smaller, specialized metaverses or VR ecosystems tailored to their needs rather than a single universal platform.”

Metaverse in 2025: Top 5 Virtual World Projects

Decentraland, Meta Horizon, Roblox, The Sandbox, and Axie Infinity are some of the most successful ongoing metaverse projects in 2025.

Decentraland

Decentraland is a virtual world where users can buy, sell, and build on virtual land plots using cryptocurrency. It’s popular for hosting various events, such as virtual concerts and art shows.

Meta Horizon

Meta Horizon is a social metaverse platform developed by Meta. Users can create and explore interactive virtual spaces, play games, and meet others, and communicate there.

Roblox

Roblox is an online platform where users can play, create, and share games made by the community. It’s popular with kids and teens because of its variety of games and social features.

The Sandbox

The Sandbox is a virtual world where users can create, buy, and sell digital items and experiences. It uses the cryptocurrency SAND and runs on blockchain technology.

Axie Infinity

Axie Infinity is a metaverse game where players collect, breed, and fight creatures called Axies, earning cryptocurrency while they play.

The Future of the Metaverse

Some people think the concept of the metaverse fails if it doesn’t live up to its big promises.

However, “rumors of the metaverse’s demise are greatly exaggerated and perhaps even a strategic move against Meta, which has heavily invested in this transformative technology,” says Waseem Mirza, an independent tech analyst, tech speaker, and host of The FutureTECH Show.

Mirza told Techopedia:

“The future of the metaverse is unpredictable, but one thing is clear: demand for immersive experiences like Fortnite and Roblox remains strong. Beyond gaming, applications in VR retail (such as virtual clothing try-ons) and blockchain-powered virtual real estate underscore its potential.”

While the term metaverse might fade away, its key ideas and technologies will continue to grow.

“One of those that I’m optimistic about is the wider entertainment sector, which will undergo another seismic shift in the metaverse era, following on from the disruption caused by streaming,” Mirza adds.

Brad Altfest, managing director, media and entertainment at Agora, also offers a metaverse prediction, saying the future of the metaverse lies in AI-powered immersive content that seamlessly blends with everyday digital experiences.

Altfest explained to Techopedia: “Generative AI will enable creators to efficiently produce hyper-realistic worlds and characters while enabling personalized, interactive storytelling across media. Similar to digital animation’s evolution, AI-generated IP will create new entertainment possibilities with characters and stories that evolve dynamically.”

Tech industry analyst Jeff Kagan believes that Metaverse will continue, but only as one technology of many.

“Today, the attention is on new and extraordinary technologies like AI and quantum and less on the metaverse,” he said.

The Bottom Line

While it’s true that the metaverse hasn’t lived up to its big promises, it’s not completely gone. Some projects have struggled, but others are still progressing in certain areas, including gaming, learning, and online work.

It might look different from what we first imagined, but the idea of bringing people together in fun and creative ways is still alive. Now, the metaverse’s future will depend on how well it can solve real problems and keep people interested.

FAQs