The virtual world of The Metaverse has been a major focus for brands over the past year, but many are pulling back. While China was set to go big on the Metaverse with its tech giant Tencent, state-run newspapers are suggesting this will no longer be the case.
Last year, it was revealed that Tencent — among other Chinese companies — would follow the Metaverse trend. This meant that the tech giant would invest heavily in the creation of its own virtual world to rival Facebook parent company Meta.
However, with Meta’s investors wary of the virtual world’s crushing costs, the company is rapidly losing money and faith. With this in mind, Chinese tech companies are seemingly pulling away from the market.
As reported by South China Morning Post, Chinese state publications are pushing companies away from Metaverse development. An article by Economic Daily, an outlet backed by the CCP, has urged against chasing the virtual world.
The article claims that the industry is seductively promising. However, “it may not fit every region”. The outlet told companies to “Be wary of feverishly following suit and betting big on it while detached from reality”.
People’s Daily, another CCP-led outlet, also informed businesses to “stay rational” when it comes to Metaverse investment. The outlet also shot down hype for the sale of Metaverse real estate, an area of the virtual world that has since fizzled out.
Despite the negativity surrounding the Metaverse, it has been supported at a government level. Over 30 different small governments in China have created policies to specifically help development of the industry. However, these regions are already altering previous policies as the industry changes in the East.
For example, Wuhan has already cut policies regarding NFTs in the virtual world. This comes after China banned cryptocurrency mining last year, an integral part of both the Metaverse and NFT market.
Of course, all of these changes come after the news that Meta would be suffering layoffs following its Metaverse blunders. Mark Zuckerberg’s Facebook parent company has been at the forefront of the industry’s development with many believing its future rests in the tech giant’s hands.