The Metaverse trend didn't take off as Mark Zuckerberg had hoped, despite his billions invested in the "social paradise" concept. However, one app in particular, VRChat, has proven that the Metaverse is not only possible but can also be successful.
Initially exclusive to the best VR headsets and quickly becoming one of the best PCVR games for years, VRChat also allowed standard desktop users to interact with hundreds of available worlds. Despite a significant surge in popularity during COVID and a player count that continues to rise, VRChat is now laying off 30% of its workforce.
"This is the hardest change we’ve had to make at VRChat, and Jesse and I take full responsibility for the decisions that brought us here," wrote VRChat CEO Graham Gaylor in an internal email shared on the official website. "While today is painful as we say goodbye to our talented friends and colleagues, we are setting up VRChat for long-term success."
Despite the consistent growth reported by SteamDB, a database tracking player counts and information on Steam games, Gaylor cited several reasons for the layoffs, including over-hiring in 2021 and 2022 and the need for "the right people in the right roles at each stage of the journey" for VRChat's future success.
Gaylor also noted in the email that the Metaverse app's user base has shrunk, adding, "Not only did we not maintain 2021 levels of growth, we shrank year over year," and stated that the over-hiring of individual contributors (ICs) led to "an oversized organization & burn rate relative to revenue and product scale."
Those laid off due to the cuts at VRChat will receive a range of benefits, including 12 weeks of severance pay, six months of healthcare coverage, stock option vesting, career support, VRChat bonuses, and more.
VRChat expanded to Meta Quest headsets in 2019, positioning itself well when the Quest 2's success made the app more accessible than ever. With COVID-19 causing millions to be in lockdown, VRChat's social features made it easy for people to connect with each other, something Zuckerberg's empty Metaverse could never offer.
If you're looking to get your Metaverse fix, you might enjoy exploring some of the best VRChat worlds. Alternatively, you could try the player-run PlayStation Home servers for a nostalgic experience.