Originally, Meta hoped to reach 500,000 monthly active users by the end of the year with Horizon Worlds, its flagship virtual reality social media platform. As the company faces obstacles to growing its user base, that figure is being revised to 280,000.
Leaving Horizon Worlds
According to internal memos and documents obtained by the Wall Street Journal (WSJ), there are currently fewer than 200,000 active users. Users have steadily declined in activity since spring, losing interest after a month on the platform.
There are only 9% of available worlds visited by players who stay, with only 50 visitors on average, while the majority of virtual worlds remain untouched by the players.
According to sources, Meta’s VR headsets, which players use to access Horizon, have seen a decline in usage. The $400 consoles have exhibited a declining retention rate in the last 3 years.
According to sources familiar with the issue, Horizon is also far behind competing platforms that offer virtual social experiences, including VR Chat, launched in 2014, and Second Life, launched in 2003.
Meta shares are currently trading at $126.76, a decline of over 60% in the past year. The market value of the company has dropped over $700 billion since September 2021.
Debating Horizon Worlds’ Daily Users
According to DappRadar, Metaverse Decentraland had 38 daily active users (DAUs) on Oct 7 compared to rival The Sandbox with 522 DAUs. Still, they are valued at billions of dollars.
DappRadar explains why there are less than 40 active users on Decentraland in a recent blog post.
The DappRadar tracks on-chain transactions via smart contracts, mainly submitted by decentralized application (Dapp) developers.
It provides information about the number of transactions from and to a smart contract as well as the number of unique active wallets (UAWs) that interact with a dapp’s smart contract.
Rather than speaking about ‘players’ vs. ‘payers,’ in this case the number of unique wallets associated with Decentraland activity is cited as the number of unique daily users.
A relatively low amount of on-chain activity is observed in these metaverse platforms, as most users perform activities without explicitly interacting with a blockchain.
In September, Decentraland reported 1,074 smart contract interactions and 56,697 logged-in monthly users on its Metaverse platform.