The Metaverse in 2025: Dead or Resting?

Once heralded as the future of human interaction, the metaverse has faded from the spotlight, its bold promises overshadowed by newer technologies and shifting priorities. But is it truly gone, or has it simply stepped into the background, quietly shaping our digital future? As we head into 2025, the term may be out of fashion, yet the technologies that underpin it – virtual worlds, digital twins, and extended reality – continue to evolve, driving innovation across industries. As the lines between the physical and digital worlds blur, the metaverse’s story may not be over; it may just be waiting for its next act.

Origins and Building Blocks

The metaverse has its roots in speculative fiction, but its underpinnings are grounded in real-world technological advancements. Neal Stephenson’s 1992 novel Snow Crash introduced the term, envisioning a vast, immersive virtual world, that ever since has influenced both popular culture and technological aspirations. Early experiments in shared digital environments date back to the 1980s and 1990s, including DARPA’s SIMNET and the gaming world’s first multiplayer environments like Habitat. These prototypes explored how physical and digital realms could be connected, laying the groundwork for today’s extended reality (XR) applications.

The essential building blocks of the metaverse include XR, digital twins, virtual worlds, AI, and open standards. XR spans the continuum from physical reality to fully immersive virtual environments, encompassing augmented reality (AR) and mixed reality (MR). Digital twins create virtual replicas of physical systems, enabling real-time simulation, analysis, and optimisation. Open standards like OpenXR and OpenUSD are critical for ensuring interoperability across platforms, allowing disparate systems to work together in a cohesive ecosystem.

The Rise and Fall of Metaverse Hype

The metaverse gained significant traction during the COVID-19 pandemic, as remote work and social distancing amplified the demand for virtual collaboration tools. Companies such as Meta (formerly Facebook), Microsoft, and Epic Games invested heavily in creating immersive platforms. The rebranding of Facebook to Meta in 2021 was a defining moment, signalling a corporate pivot toward building a virtual future. However, the initial excitement soon gave way to scepticism.

Several factors contributed to this decline. The metaverse’s utility was often questioned, with critics arguing that it lacked clear use cases beyond entertainment and gaming. High costs, both financial and computational, posed barriers to entry. Additionally, the cartoonish aesthetic of many virtual environments failed to resonate with professional and enterprise users. By 2023, attention shifted to AI technologies like ChatGPT and generative AI, which offered immediate and demonstrable benefits in fields such as productivity, automation, and creative industries.

Continuing Relevance

While public interest in the metaverse as a unifying concept has diminished, its underlying technologies continue to evolve and find practical applications. XR technologies, for example, are increasingly integrated into sectors such as defence, healthcare, and aviation. AR glasses are being deployed for maintenance and training, enabling technicians and pilots to overlay critical information onto real-world environments. Mixed reality, which blends digital and physical elements, is gaining traction in simulation-based training and operational environments.

Digital twins represent another area of significant growth. These virtual replicas of physical systems are transforming industries by enabling real-time monitoring, predictive maintenance, and optimised design processes. In aviation, digital twins are used to simulate aircraft performance, train pilots, and streamline maintenance procedures. Their role in connecting the physical and digital worlds makes them a cornerstone of any future metaverse-like ecosystem.

Virtual worlds, too, remain highly relevant. Gaming platforms such as Roblox and Microsoft Flight Simulator continue to push the boundaries of interactive experiences. Microsoft Flight Simulator’s upcoming career mode aims to provide a comprehensive pathway for aviation enthusiasts, from hobbyist pilots to professional trainees. Meanwhile, Roblox exemplifies how user-generated content and AI tools can democratise creativity, allowing users to build and customise virtual environments with ease.

Shifting Terminology and New Directions

The waning of the term “metaverse” does not signify the death of the technologies it represents. Many organisations have pivoted to alternative terminology, such as “spatial computing,” “immersive technology,” or “Web 4.0.” Apple’s Vision Pro, for instance, avoids direct associations with the metaverse, focusing instead on spatial computing capabilities. Similarly, the European Union has reframed its discussions around the metaverse as part of its Web 4.0 initiatives, emphasising decentralised, intelligent, and immersive internet technologies.

This shift in language reflects a broader reorientation toward practical applications and user-centric experiences. Rather than pursuing an all-encompassing virtual world, developers are focusing on specific use cases that integrate digital tools into everyday life. For example, advancements in AI-driven avatars and natural language processing are enabling more intuitive interactions in virtual environments. These targeted applications suggest that the metaverse’s vision remains relevant, even if it is no longer marketed under that name.

The Future of the Metaverse

The metaverse’s potential lies in its ability to unify disparate technologies and create seamless interactions between physical and digital worlds. Standards and interoperability will be critical for achieving this vision. Initiatives such as OpenXR aim to standardise XR experiences across devices, while OpenUSD is working to establish a common framework for 3D digital content. These efforts are essential for enabling collaboration across industries and fostering innovation.

Another key factor in the metaverse’s evolution is workforce empowerment. Training employees in emerging technologies like AI, XR, and digital twins will be crucial for organisations seeking to leverage these tools effectively. Real-time interactive 3D environments can enhance collaboration, improve situational awareness, and accelerate decision-making processes.

Finally, the role of entertainment and commerce in driving technological adoption cannot be overlooked. Historically, gaming and consumer technologies have often led the way in popularising innovations, from graphical user interfaces to VR headsets. As these technologies mature, their influence on sectors such as aviation, healthcare, and manufacturing is likely to grow.

Conclusion

In 2025, the metaverse may not dominate headlines as it once did, but its foundational technologies are far from obsolete. XR, digital twins, virtual worlds, AI, and open standards are shaping the future of industries and redefining how humans interact with technology. Whether it is eventually called the metaverse or something else, the ambition to merge digital and physical realities remains significant.

Rather than viewing the metaverse as a failure, it may be more accurate to see it as resting. Its components are thriving, and it still has the potential to become a unifying framework for the next generation of digital transformation. To embrace the metaverse, enterprises can:

• Build and Connect the Virtual and Physical Worlds:
  Build a persistent connected open 3D digital enterprise-wide ecosystem supporting the digital and physical worlds.

• Inform and Empower Workforce:
  Continuously inform and support your workforce in XR, AI, and cutting-edge tech, and provide real-time interactive 3D digital spaces for seamless teamwork and training.

• Optimise with Digital Twins:
  Build and connect digital twins and simulations to enhance engineering, operations and training.

The physical world is interactive and three dimensional and our digital world is becoming more so too.