The Metaverse: Did the Dream End Before It Even Began? The Story of US$70 Billion That Evaporated

Mate, remember a few years back when everyone on social media was going on about the metaverse like it was the promised new paradise we’d all be living in? They were telling us: "Get ready, real life is over, everyone’s heading to the virtual world." The promises were coming down like rain. Mark Zuckerberg, the guy who changed the face of social media, was betting everything he had on this new world. He even changed his company’s name from Facebook to Meta to show us he meant business. And to be fair, back then, the whole thing looked like a dream that was bound to come true.

But... just a week ago, news dropped that was a bit of a shock for anyone following along. The massive metaverse project, "Horizon Worlds," was officially shut down. And not just shut down, but along with it went roughly US$70 billion. Seventy billion! That’s the kind of number that makes you stop and wonder: was this all just an illusion? Did the whole world get fooled by an idea that looked brilliant from a distance but was empty inside?

From "The Family Experiment" to the Billionaire Escape

Speaking of which, this story reminds me of two books that came out in recent years. If you’d read them five years ago, you’d think the authors were either incredibly pessimistic or had a crystal ball. The first one was called "The Family Experiment", which is about a family’s experience in a virtual world, and how that world could become a beautiful prison for people instead of a sanctuary. The second book, which caused quite a stir, is "Survival of the Richest: Escape Fantasies of the Tech Billionaires". This one talked about the wealthy entrepreneurs in Silicon Valley, and how their dreams of building virtual worlds were really just a way to escape harsh reality—and even escape ordinary people, who they saw as the cause of the world’s problems. Imagine that: instead of fixing real-world problems, they’d rather build private worlds just for themselves and their kids! Isn't that strange?

And that’s exactly what happened with Zuckerberg’s project. The project that was supposed to be a platform for everyone just turned into a massive bubble. People tried out virtual reality (VR) at first, but it quickly felt hollow. Sure, the experience was novel the first time, but spending hours with goggles over your eyes, interacting with cartoonish avatars, just wasn’t a genuine substitute for hanging out with friends at a waterfront café in Wellington.

• Reason one for the failure: The high cost. The hardware is expensive, and the tech needs constant development.
• Reason two: The cold social experience. Simply put, conversations in the metaverse felt like talking to a wall.
• Reason three: The gap between the promise and reality. They promised us infinite worlds, but what we got were mostly empty ones.

What About Love and Connection? The "Nevermet" Story

In the middle of all this hype, apps like "Nevermet - VR Dating Metaverse" appeared. The concept was to find your life partner through the virtual world before meeting them in real life. The idea itself was appealing, especially in an era where relationships are becoming more complex. But the question is: can you really feel genuine emotions for someone you meet as an avatar?

On paper, it seemed like the perfect solution for those dealing with shyness or social anxiety. But reality proved that human emotions can’t be reduced to virtual gestures. Lots of users tried the app, but most ended up going back to traditional dating apps. Because they simply discovered that real touch, eye contact, and body language are what create a genuine connection. Pixels just can’t create real chemistry between two people.

The Extinction of Genuine Human Experience

All of this leads me to another fascinating book, called "The Extinction of Experience: Being Human in a Disembodied World". This book talks about the real danger we were facing during the metaverse craze. The danger wasn’t about failing technologically; it was about succeeding to the point where we lose our humanity. Imagine reaching a stage where we prefer to sit alone at home with goggles on our faces rather than going out, breathing in the morning air, or grabbing a coffee with friends.

The spectacular failure of Meta’s project might actually be a blessing in disguise, saving us from that fate. Sure, we lost US$70 billion (a massive amount, but it’s big corporate money), but we gained a far more valuable lesson: no technology can replace the innate human need for physical connection and real emotion. Here in New Zealand, and all over the world, we need reality, not an escape from it.

So, what do you reckon? Do you think this is the end of the metaverse for good, or just a setback, followed by a return in a different form? Drop your thoughts in the comments, because I reckon this story isn’t quite over, but it’s certainly ended in a way no one expected.