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Why did the metaverse die? Because Silicon Valley doesn’t understand the concept of fun
(www.fastcompany.com)
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This is the only true answer here.
Even Meta themselves said they want to "build the metaverse", at that point the word still had a somewhat clear definition. It then became a bullshit buzzword and lost all meaning. Now even Meta is using the word as a synonym for "VR" or "Multiplayer", which has nothing to do with the snow crash definition of the word.