Following Recent Layoffs at Microsoft, Altspace VR Will Shut Down Its Service.

On Friday, Altspace VR, a social platform owned by Microsoft specializing in virtual reality, announced that it would shut down its service on March 10, 2023. The closure follows the latest layoffs at Microsoft.

Altspace VR made its debut in 2015 under the leadership of its founder and CEO, Eric Romo. After successfully steering the platform, Eric took the role of Director of Product, Reality Labs Social Experiences at Meta until 2022. In 2017, Altspace VR faced a near closure but was ultimately saved when Microsoft stepped in and acquired the service.

As part of its mixed reality (MR) division, Microsoft has been running Altspace VR alongside developing cutting-edge technologies such as Azure AI, Hololens, and Mesh immersive solutions. However, with the recent layoffs at Microsoft, resulting in the loss of 11,000 jobs, the future of the MR division, including Altspace VR, has become uncertain. The job cuts have dramatically impacted the division.

The Mass Layoffs

The large-scale layoffs across Microsoft’s offices have significantly impacted the progress of the company’s extended reality (XR) solutions. Aside from shutting down Altspace VR, Microsoft has also decided to halt development on its mixed reality tool kit (MRTK) software development kit.

MRTK is the foundation for various enterprise-level solutions, applications, and tools, including the flagship Hololens device. However, with Microsoft discontinuing support for MRTK, the Hololens and other MRTK-dependent solutions’ future remains uncertain.

Microsoft’s layoffs and organizational changes are similar to the restructuring of Meta’s Reality Labs division for immersive technology research and development (R&D). The recent moves at Microsoft mirror the changes made by Meta to address the financial losses of its XR R&D division. In 2022, Meta reported a staggering $10 billion loss in profit from its XR R&D division leading to the reshuffle of the division.

We have some sad news, Altspacers. #AltspaceVR is shutting down on March 10th.

Though we hate saying goodbye, we also feel such pride and gratitude for all the magic that happened here. ✨

Thanks for joining us on this epic adventure. #socialvr https://t.co/peCwpaaBl3

— AltspaceVR (@AltspaceVR) January 20, 2023

Conclusion

As Altspace VR closes its doors, its remaining staff and resources will be redirected toward Microsoft’s ongoing development of Mesh. In its official statement on the closure, Altspace VR emphasized its desire to contribute to creating a platform that offers the best opportunity to all involved.

However, despite its current challenges, Microsoft remains committed to investing in immersive technologies such as Chat GPT. This week, Microsoft and Chat GPT’s parent company Open AI announced a multi-billion dollar extended partnership.

The featured image was taken from siliconangle.com