South Korea’s SK Telecom has announced plans to shut down its metaverse platform, ifland, by March 31, 2025. After five years of operation, the company is ending the service to reallocate resources toward artificial intelligence (AI) development, marking a strategic shift in its priorities. SK Telecom expressed gratitude to its users and shared instructions for refunds on in-app purchases via the platform’s website.
The decision comes as enthusiasm for metaverse platforms, which surged during the Covid-19 pandemic, has waned. Initially launched as a virtual alternative for social interaction, many consumer-focused metaverse services failed to sustain user interest post-pandemic. SK Telecom now aims to focus on generative AI, a field currently dominating global tech innovation.
The platform initially gained traction, with over 4 million monthly active users at its peak. However, as interest in virtual worlds waned post-pandemic, the user base dwindled to around three million, prompting SK Telecom to redirect its focus.
The pandemic-era excitement around metaverse platforms like ifland was fueled by social distancing measures, with virtual spaces hosting events ranging from job interviews to K-pop concerts. However, as restrictions eased, demand for these services declined, showing the irreplaceable value of in-person interaction. Despite efforts to retain users, such as leveraging K-pop content and expanding into 49 international markets, ifland failed to sustain long-term engagement.
With the platform’s shutdown, SK Telecom’s plans strategic pivot toward artificial intelligence (AI). The company launched its own large language model (LLM) in 2024 and introduced “A,” an AI agent that has received positive feedback for its capabilities. This shift has proven lucrative, with SK Telecom’s annual revenue climbing to $13.2 billion, supported by a surge in new subscribers attracted to its AI-driven services.
As part of its AI expansion, SK Telecom plans to enhance “A” with advanced features such as call summaries and multi-agent functionalities by 2025. The AI assistant is also set to debut in European and North American markets under the name Aster.
The decline of ifland’s has shown the broader challenges faced by metaverse platforms. SK Telecom reported 3.7 million monthly active users (MAUs) for ifland in Q4 2023, a drop of 0.6 million from the previous quarter.
Despite this, the company continued to invest in the platform, integrating AI features and expanding into Southeast Asia through partnerships with Malaysia’s CelcomDigi and the Philippines’ Cherry, aiming to tailor services for regional users.
Globally, metaverse platforms face similar struggles. Even Meta, which rebranded to emphasize its focus on the metaverse, has remained tight-lipped about the performance of Horizon Worlds. Although the company introduced Meta Credits for virtual item purchases, the actual number of users engaging with the platform remains unclear, echoing the challenges faced by SK Telecom and other players in sustaining user interest.
