Metaverse Left Out in the Cold Amid ChatGPT Craze

Global search trends for 'Metaverse' (above) and 'AI'. Searches for Metaverse peaked in February last year and have been steadily declining since. In contrast, searches for AI have surged recently due to the ChatGPT craze. (Source: Google Trends)

[Asia Economy Reporter Seungjin Lee] The AI boom sparked by ChatGPT is intensifying. Companies unanimously stated that they will focus their business capabilities on AI development this year. The metaverse (extended virtual world) has quietly disappeared. During the COVID-19 period, as non-face-to-face interactions became routine, companies rushed to develop metaverse services. Even news of metaverse service development caused stock prices to soar. However, with the progression of the endemic phase, the atmosphere has recently changed drastically.

Metaverse Searches Decrease by 70%

According to Google Trends, which tracks global search volume trends, the metaverse has been on a decline since last year. Taking February of last year as 100 in search volume, it dropped to 49 in October of the same year and then plummeted to 23 this month. Search volume has decreased by more than 70% in one year.

On the other hand, AI searches have surged. Compared to a year ago, AI searches increased by 60% as of this month. This is due to the attention on ChatGPT. Until the end of last year, AI search volume showed little change, but it sharply increased from the time ChatGPT was introduced to the world.

This change was also evident in the earnings conference calls this month of game companies that led metaverse service development.

In February last year, NCSoft (hereafter NC) announced, “We are starting a metaverse business through the fandom platform ‘Universe’” and added, “We believe connecting games to this is the completion.” However, NC recently shut down the Universe business. The related metaverse business has effectively been canceled.

On the other hand, NC stated this month, “Our AI research and development team is conducting research,” and “Fundamentally, it is most important to utilize AI in game production and content creation.” Other game companies expressed similar views, all agreeing to focus their capabilities on AI development.

Naver Z Metaverse Platform Zepeto

Metaverse Platform Duopoly... What About New Services?

The polarization of metaverse platforms is intensifying. Interest in the metaverse is declining, making it even harder for new entrants to establish themselves.

Roblox’s DAU (Daily Active Users) in December last year was 61.5 million, an 18% increase compared to the same period the previous year. Naver Z’s Zepeto surpassed 400 million cumulative users last year, showing steady growth.

On the other hand, Meta, which invested $10 billion in the metaverse sector, has struggled. It recorded a cumulative loss of $13.7 billion in this business alone. The number of users on its metaverse platform ‘Horizon Worlds’ continues to decline.

Domestic game companies preparing to launch new metaverse platforms this year are also facing gloomy prospects. Nexon plans to officially launch the metaverse platform ‘MapleStory World,’ which was piloted in September last year, within this year. This platform once exceeded 4,000 DAU among domestic Android users but currently has fewer than 1,000 users.

Netmarble plans to release a new game incorporating the metaverse, ‘Modoo Marble 2: Meta World,’ in the first half of the year. Netmarble, which turned to a deficit last year, intended to rebound with the new release, but the recent sharp decline in interest in the metaverse has disrupted these plans. Additionally, Krafton and Com2uS have also invested in metaverse platform development.

These companies maintain that they will release their services as scheduled. However, they plan to explore various measures to secure users and profitability.