Virtual Worlds' Second Life and Dive

It's tempting to dismiss the Metaverse as merely a modern twist on old concepts—a notion that's both partially true and false. Technological advancements have significantly enhanced our virtual experiences. Moving from observing avatars on screens to using VR headsets for three-dimensional immersion, making users feel as though they embody their avatars. Advances in audio technology and haptic feedback further enrich these experiences, with ongoing efforts to incorporate smell and taste with technologies enabling users to experience the scent of grass in a virtual meadow or the flavor of food through a lickable screen. Despite these advancements, the Metaverse lacks a "killer application" that appeals to the masses, maintaining its niche appeal. Our data from 2009 showed individuals spending up to 16 hours daily in Second Life, but this level of engagement remains limited to a minority, underscoring the challenge of mainstream adoption.

Understanding the fluctuating interest in virtual worlds requires examining the recent resurgence and subsequent decline of the Metaverse. Mark Zuckerberg's 2021 vision for the Metaverse as the internet's next stage, backed by a $10 billion investment, sparked initial excitement. Yet, this announcement also aimed to refresh Facebook's image amidst waning youth interest and various scandals. The COVID-19 pandemic highlighted the appeal of digital spaces for remote interaction, but a breakthrough application for virtual worlds failed to emerge, leading to growing skepticism. Excitement for the Metaverse diminished as generative AI technologies like ChatGPT offered immediate benefits. Environmental concerns about VR technologies and broader economic challenges also contributed to the fading relevance of the Metaverse. This decline suggests the hype was more a product of strategic timing than significant innovation.

Predicting the trajectory of the Metaverse and identifying its "killer application" is challenging. Forecasts range from gaming to expansive applications across businesses and homes. Virtual meetings could address "Zoom fatigue" by providing more authentic interactions via avatars. The Metaverse could transform retailing, especially clothing and fashion, making online shopping more immersive. Supply chain management could benefit from immersive simulations and digital twins, improving decision-making, risk management, and transparency. Promoting interactive collaboration, enabling real-time scenario testing, and offering detailed insights into operations, the Metaverse could drive resilience, efficiency, and sustainable practices. The education sector could also benefit from enriched virtual learning environments. Key questions include the extent to which education will transition online and whether it will adopt more interactive, gamified methods. Positive answers might indicate the Metaverse's readiness for a third wave of popularity, suggesting "Third Time's the Charm" as an apt descriptor for its eventual widespread adoption.

Further Reading:

• Kaplan A., Haenlein M. (2024) To Be or Not to Be: Will Virtual Worlds and the Metaverse Gain Lasting Traction? California Management Review, 66(4).
• Kaplan A., Haenlein M. (2009) The fairyland of Second Life: About virtual social worlds and how to use them, Business Horizons, 52(6), 563-572.