“Market Changes” Coerces Netmarble to Abandon The Metaverse

For the better part of 2021, metaverse endeavors seemed achievable. Social media giant Facebook had rebranded itself into Meta Platforms to showcase their interest in virtual worlds. Heck, they even saw it as the future. Fast forward two years, companies are leaving this space. Latest on the list of companies that have quit metaverse is South Korean mobile gaming company Netmarble.

A Difficult Decision

South Korean publication Yonhap News reported that a spokesperson confirmed the news in an email that they will liquidate their subsidiary dubbed Metaverse World. The reason behind the decision is reported to be “market changes.” Some recent reports have also indicated the waning interest in the metaverse.

“We can confirm Netmarble F&C has made the difficult decision to terminate its ‘Metaverse World’ entity, which was developing its Metaverse platform,” the statement shared with video games publication Game Developer reads. “Netmarble F&C continues to seek a sustainable business direction, but in light of business conditions and market changes within the Metaverse industry as a whole, the company has been forced to close down this subsidiary for the time being.”

Metaverse World created a game during its tenure called Grand Cross: Metaworld which was unveiled in December 2022. It was supposed to launch globally last year but did not come out. Now, as they are closing down their subsidiary, the future for the game appears unsure. Although, they may bring it up under a different umbrella in future.

Game Developer highlights that the South Korean publisher once called Meta World as the “virtual influencer.”According to a press release, “Grand Cross: Metaworld provides a personal space where users decorate in detail and develop a theme of its own for future B2B partnership opportunity.”

It further added that, “Also, to create an environment where anyone can become a virtual influencer without a large expenditure initially, personalized avatar customization tools are provided and actual movements and expressions can be captured using webcam and software.”

Although the news appears negative from a business perspective, it must be noted that South Korean authorities have launched a metaverse initiative in the past. Launched last year, Metaverse Seoul is the digital replica of the nation’s capital. However, it is still in a developmental phase and is likely to be finished by 2026.

The nation is pouring money into the virtual worlds as a part of the Digital New Deal, a political initiative. In 2022, authorities there announced plans to earmark around $200 Million for similar projects. Not just South Korea, but countries like Japan have laid out strategies to make investments in metaverse and non-fungible tokens (NFTs).

Some studies suggest that investors have seemingly discontinued their interest in virtual worlds. Investments, according to data aggregator CrunchBase, have declined from $6 Billion to $2 Billion between 2022 and 2023. Nearly 400 Million users are there on the metaverse globally, however, the number includes inactive accounts too.

Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.