Sources: Disney eliminates its metaverse unit, cutting ~50 jobs, and ceases work on an Amazon Prime-like program integrating Disney+ and other Disney platforms
The unit, once seen as developing a new form of storytelling, had about 50 employees — Mickey Mouse has left the metaverse.
Wall Street Journal
Context & Ripple Effects
Disney had previously withdrawn from internally developed console games through the cancellation of Disney Infinity. This latest cut extends that record of stepping back from company-run interactive bets rather than sustaining them indefinitely.
The decision also follows Disney+'s first quarterly subscriber decline since launch, while Hulu and ESPN+ grew. Ending the cross-platform program matters because it removes a proposed mechanism for tying Disney's streaming and other services into a single membership-like offering.
First-order effects
About 50 employees in Disney's metaverse unit are affected as the unit is eliminated, and its storytelling-focused work stops.
Disney ceases development of the proposed program to integrate Disney+ with other Disney platforms, leaving those services without that planned unified layer.
Second-order effects
The shutdown removes a prospective Disney-led product that could have tested new forms of interactive franchise engagement and cross-service bundling.
Teams and vendors attached to the two initiatives must either be redeployed to existing Disney products or lose the work, while Disney's current platform experiences remain the nearer-term route to audiences.
Third-order effects
Together with Disney's earlier retreat from in-house console development, the move suggests large media owners may favor lower-commitment ways to extend franchises when internally built interactive platforms lack a clear operating path.
If comparable pullbacks persist, immersive-media and entertainment-platform suppliers will face a market shaped more by pilots, licensing and partnerships than by long-lived in-house metaverse divisions.
The trend: This is one data point in entertainment companies narrowing expensive, self-built interactive and platform experiments in favor of businesses with clearer near-term audience traction.
Disney has abandoned a plan to develop its own membership program like Amazon Prime, according to @RWhelanWSJ. Disney has also eliminated the division that was developing metaverse strategies, according to the report. https://www.wsj.com/... https://twitter.com/...
I mean what did anyone expect here. This was a dumb bet, Zuck said jump they said ‘how high’ without thinking. Just so much wasted time and effort by people who I guess slept through Second Life. C'mon, think for yourselves... https://www.wsj.com/...
The problem is that brands made the mistake of thinking the Metaverse was now. They have gaming divisions, community divisions, immersive/experiential, etc. They didn't need an additional unit for a buzzword when their talent is already building the future. https://twitter.com/..…
Disney has eliminated its metaverse division, a 50-employee unit, per people familiar with the situation, as part of broader restructuring expected to reduce head count by around 7,000 across the firm over next two months. https://www.wsj.com/... via @RWhelanWSJ @JBFlint
could you have imagined if this went through? Disney+ account and then buy your additions, like Amazon Prime. $ for Disney World, $ for Land, $ for Hulu, shop, etc. would have been a pick and choose adventure chaos ring https://twitter.com/...
Disney has eliminated the 50-person unit that was developing its metaverse strategies, reports @RWhelanWSJ and @JBFlint. Disney is beginning its first round of layoffs this week as it looks to shed $5.5 billion in costs. https://www.wsj.com/...
Early prediction is that @RobertIger is playing a quarterly game for now. Laying off people to save 5.5 billion will look good on next earnings call. After a quarter or two I'm sure these guys will be hired back https://www.wsj.com/...
Disney has eliminated its next-generation storytelling and consumer experiences unit. The small division of about 50 employees was developing metaverse strategies. Mike White, who led the division will remain at Disney. (https://www.wsj.com/...) https://twitter.com/...