Metaverse adoption challenges: Are potential users losing interest?

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  Quantumrun Foresight
• February 1, 2024

Insight summary

Companies might have to reconsider their strategies and allocate resources towards innovative communication techniques that aim to promote metaverse adoption among the broader population. This strategy may involve creating engaging and relatable content that highlights the metaverse's benefits and potential use cases while addressing any concerns or misconceptions. Additionally, forming partnerships with influential figures and organizations can help enhance the credibility and appeal of the technology.

Metaverse adoption challenges context

One of the primary obstacles in promoting the metaverse is persuading potential users that it extends beyond just children and gaming enthusiasts. According to the Chief Business Officer of Roblox—a metaverse gaming platform—digital natives, such as those belonging to Gen Z, find it easier to comprehend virtual reality (VR) interactions. However, enticing older generations to participate in the metaverse might require more than just offering entertainment value.

Companies are marketing the metaverse as the future workplace to make it more appealing. For instance, Microsoft introduced Mesh for Microsoft Teams in 2022, a mixed-reality platform that enables collaboration within the metaverse through holograms and avatars. By emphasizing the potential professional applications of the technology, metaverse companies can attract a wider range of users.

Despite these efforts, some critics believe that persuading more people to join the metaverse might be futile. Epic Games' General Manager commented that interest in the technology is already waning. A 2022 survey conducted by business intelligence firm Morning Consult discovered that only 36 percent of US respondents were interested in the metaverse. Furthermore, only 28 percent of those who indicated interest are women. In another 2022 survey by the market research firm Ipsos, some high-income countries are not even aware of the metaverse. For example, less than 30 percent in France and Belgium know about the technology. Meanwhile, countries with the highest awareness are Turkey (86 percent), India (80 percent), and China (73 percent).

Disruptive impact

The primary reason for the decline in interest is that many metaverse platforms, such as Meta's Horizon Worlds, suffer from technical issues like glitches, limitations, and subpar graphics. To address these challenges and promote broader metaverse adoption, companies must focus on enhancing the overall user experience by improving graphics, reducing technical issues, and expanding the range of applications. Metaverse communities could evolve into specialized experiences primarily catering to younger generations, such as Gen Z and Gen Alpha. These users are often more attracted to customizing their avatars and participating in live events within virtual spaces as they have grown up with a greater level of comfort and familiarity with digital technologies. 

To draw in older generations, some brands might focus on creating interest groups tailored to their specific preferences and needs. However, the high cost of VR/AR headsets may be a barrier to adoption for many potential users in these age groups, who may be less inclined to invest in such devices. Companies transitioning to metaverse-based workplaces could face resistance from Gen Xers and Baby Boomers, who might already be experiencing technology fatigue. These generations, who have seen rapid technological advancements throughout their lives, may be more skeptical or overwhelmed by the prospect of fully immersive virtual work environments. Companies might consider developing low-cost devices or integrating extended reality (XR) functionalities into web browsers to address these concerns. 

Implications of metaverse adoption challenges

Wider implications of metaverse adoption challenges may include: 

• A slowdown in the development of advanced technologies such as haptic feedback, and virtual and augmented reality, as there would be less incentive for companies to invest in research and development.
• Educational institutions might miss out on the benefits of integrating virtual learning environments and remote learning possibilities for global students.
• Low metaverse adoption limiting the expansion of remote work, with fewer companies adopting the technology for virtual meetings and collaboration.
• A lack of interest in the metaverse leading to digital divide issues, with marginalized communities potentially missing out on the benefits of this technology due to limited access.
• Potential environmental benefits from reduced travel, energy-efficient virtual offices, and digital conferences might not be realized, which could contribute to increased carbon emissions and resource use.
• Low adoption of the metaverse impacting the labor market by limiting the number of remote and flexible job opportunities, thereby hindering workers' ability to adapt to changing economic conditions and reducing the overall flexibility of the labor market.
• Metaverse developers creating more affordable platforms and devices to boost adoption rates.

Questions to consider

• Are you interested in exploring the potential of the metaverse?
• What are the other ways that companies can make the metaverse more useful and accessible to the broader population?