Disney has cut its metaverse focused unit amid company-wide layoffs, sparking concerns among industry experts. The move has raised questions about the company’s metaverse strategy and its potential impact on future growth.
In a recent development, Walt Disney Corporation has cut its metaverse focused unit called “next-generation storytelling and consumer experiences unit.” The move comes as part of company-wide layoffs that are expected to see around 7,000 leave the company over the next two months.
The team, which is composed of 50 individuals, was responsible for showcasing Disney’s iconic intellectual property such as Marvel, Pixar, and 20th century studios. Despite the large potential content Disney could churn out, it was abruptly driven to a halt as the company is experience a massive layoff due to market conditions.
Disney’s metaverse strategy was not as planned out and solid relative to other large entertainment companies. With the large amount of iconic and popular Intellectual property behind the corporation, it’s considered a mystery by experts why the company has so-far refrained from any solid involvement into web3 or metaverse.
The company hinted that the metaverse could play a role in any genres, such as gaming, sports, and reportedly a theme-park attraction with a metaverse theme. Last year, Disney showcased its bullishness for the metaverse with the revealed hiring of an expert on “legal advice and support for global NFT products” and their unveiled NFT patent for a theme park with metaverse aspects.
The decision to cut the metaverse unit has to a surprise but given the current trend with massive layoffs we’ve seen from Meta and other metaverse-driven companies, perhaps this move is seen as an appropriate setback or at least a moment to realign its purpose for entering web3 in the first place.
However, the metaverse is a rapidly growing industry, and many companies are still showcasing investments in this industry. By cutting its metaverse unit, Disney may lose out on a significant opportunity to expand its business and reach new audiences.
Final Thoughts
While it remains to be seen how this move will impact the company’s future, it is clear that the metaverse is a technology that cannot be ignored. An appropriate example would best be showcased in the case of the Pokemon Company.
For several years, the company was hesitant to dive into the metaverse, but recent reports have shown the company’s growing interest in the industry. The iconic collectible IP for gaming, merchandising, and more posted a hiring position for a metaverse position, likely to be the head for its dive into the metaverse.
We could say that we are currently experiencing a “pain period” or a brief halt in this industry. It would be interesting to see how these companies would contribute to the metaverse in the coming years.
Edmond is a passionate writer for Video games, GameFi and Web3. He has worked for top GameFi companies and video game/crypto news websites.
