Microsoft Pulls the Plug on Its Industrial Metaverse After Only Four Months
In Brief
Microsoft is discontinuing its Industrial Metaverse initiative, which was just launched four months ago to support clients in leveraging the metaverse in various industrial applications.
While Microsoft is dismantling its Industrial Metaverse and closing down AltspaceVR, the tech giant is still dedicated to its vision for the metaverse and is actively investing in its flagship platform, Microsoft Mesh.
In a surprising move, Microsoft has decided to dissolve its Industrial Metaverse core team that was established only four months prior to support industrial applications of the metaverse. This decision has led to the layoffs of around 100 staff members, including the project’s co-founders, The Information reports.
The team was set up in October 2022 by Microsoft with the goal of crafting software solutions for managing power plants, transport systems, and robotic automation in industries. However, following the company’s recent decision to reduce its workforce by 10,000 positions—amounting to 4.5% of its total employees—this team, referred to internally as Project Bonsai, became one of the casualties. In addition to cutting jobs, Microsoft also announced AltspaceVR, its virtual reality platform, is also being shuttered.
In a similar vein, Meta has also been scaling back on some of its metaverse projects. Recently, Meta has moved to discontinue Crayta, a studio it had acquired just under two years ago. Furthermore, it is also announced shutting down a well-known metaverse game from its Oculus lineup. discontinuing Echo VR However, Microsoft is not abandoning its metaverse ambitions. Just last week, the tech firm
reaffirmed its commitment to immersive technologies, reiterating its focus on the Mixed Reality initiative and the HoloLens 2. published an article Despite winding down both the Industrial Metaverse and AltspaceVR, Microsoft is channeling its resources into its preeminent metaverse platform, Microsoft Mesh. At present, they are conducting trials with select businesses, leveraging their insights to refine the product further.
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Disclaimer
In line with the Trust Project guidelines Agne is a journalist covering the most recent trends in the metaverse, AI, and Web3 realms for the Metaverse Post. Her enthusiasm for storytelling has driven her to engage in numerous interviews with industry specialists, continually on the lookout for compelling narratives. Agne holds a Bachelor's degree in literature and has a rich writing portfolio that spans various topics including travel, art, and culture. Additionally, she has volunteered as an editor for an animal rights non-profit, where she contributed to raising awareness about animal welfare issues. You can reach her at
