Microsoft Pulls the Plug on AltspaceVR

AltspaceVR, a virtual reality platform that allows users to attend live concerts, play games with friends, and even form long-distance relationships that have turned into real-life marriages, is closing up shop. 

In a blog post(Opens in a new window), the Microsoft-owned platform announced that it willclose down on March 10, nearly eight years after it launched in May 2015.

The news comes as Microsoft directs its resources toward a new mixed reality platform, called Microsoft Mesh(Opens in a new window), which seeks to connect workplaces and colleagues with each other. The current plan is to focus on enterprise clients before a wider consumer rollout “over time.”

“We look forward to what is to come, including our launch of Microsoft Mesh, a new platform for connection and collaboration, starting by enabling workplaces around the world,” AltspaceVR says. “In the near-term, we are focusing our VR efforts on workplace experiences, learning from and alongside our early customers and partners, and ensuring we deliver a foundation that enables security, trust and compliance.”

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The VR platform initially announced it would shut down in 2017 before Microsoft swooped in and bought the company that year. Microsoft is currently undergoing a restructuring amid an announcement it would shed 10,000 of its employees, roughly 5% of its total workforce.

In a statement, AltspaceVR says: “The decision has not been an easy one as this is a platform many have come to love, providing a place for people to explore their identities, express themselves, and find community.

“It has been a privilege to help unlock passions among users, from educational opportunities for personal growth to the development of unique and wonderful events, groundbreaking art, and immersive experiences—enabling this community to achieve more,” it adds.

The news comes as the VR-based metaverse might be losing its pull on game developers. In a recent survey by the Games Developers Conference, 45% of game developers said they did not believe the metaverse concept will ever deliver on its promise.