Holoearth has collapsed! Burning 3.2 billion yen, why is the VTuber metaverse still unable to take off?

Japan’s VTuber giant Hololive’s parent company Cover announced that the metaverse platform “Holoearth” will shut down, recognizing a loss of approximately 3.2 billion yen. This article will explore the reasons behind the failure of this costly project.

Holoearth is about to close, and the VTuber metaverse has failed

Recently, Japan’s VTuber giant Hololive’s parent company Cover suddenly announced on (5/14) that their metaverse platform “Holoearth” will cease operations on June 28, and a special loss of 8B yen will be recorded in the latest financial report, sparking heated discussions among fans in Taiwan, Japan, and other countries.

This article will review the development history of “Holoearth,” compile official statements from Cover and discussions among players, and analyze the reasons behind the project’s ultimate failure.

Holoearth was launched during the peak of the metaverse craze

In recent years, VTuber, as an emerging type of YouTuber, has rapidly moved from niche to mainstream visibility. Cover’s Hololive, with 47 channels and over 63 million total subscribers, is a well-known VTuber talent agency in the industry.

Image source: VTuber Ranking

Leveraging its large fan base, Cover announced the “Holoearth” project in 2021, with an official release scheduled for April 2025.

“Holoearth” is a metaverse project based on the Hololive universe, featuring multiple gameplay modes such as sandbox, survival adventure, and virtual concerts. Players can interact in virtual lobbies, explore together with VTubers and other players.

• **Related report: “Holoearth” official version launched! How to play and earn? Game features and gameplay overview

Cover CEO Yagoo Hasegawa (nickname: Yagoo) once stated that he hoped to create a dedicated communication space through “Holoearth.” At that time, Cover aimed to deeply integrate the metaverse with VTuber culture and generate high revenue through concert tickets and virtual item sales.

Image source: Cover

Reasons for Holoearth’s failure, related to too many elements?

Although initially confident, “Holoearth” quietly exited after only one year since its official launch.

Regarding the reasons for “Holoearth”’s failure, Yagoo admitted at the financial press conference that the team added live streaming activities and games to the project, resulting in too many elements, which led to subpar functionality. This not only increased the burden on their VTubers but also failed to leverage the IP’s influence.

After recognizing a loss of nearly 3.2 billion yen, Cover’s management team voluntarily refunded part of their salaries. However, the virtual avatar technology and 3D motion capture developed during “Holoearth” will be integrated into their existing live streaming business to strengthen core operations.

Additionally, Cover announced future strategies, including a new project called “mekPark,” similar to a trainee system, which will regularly audition new talents to build a stronger talent pool and improve management capabilities.

Image source: Cover

PTT netizens point out the fatal flaw: Holoearth feels like a semi-finished product

The announcement of Holoearth’s closure sparked lively discussions among communities in Taiwan and Japan.

On the PTT forum’s West Lounge, Taiwanese netizens generally believed that the game lacked engaging content, which they attributed to Cover’s lack of experience in game development.

Players pointed out that although “Holoearth” features building and monster fighting elements, the gameplay experience feels like a semi-finished product. Fans initially expected rich storylines for Hololive members, but the official version lacked Hololive’s signature features. Additionally, server stability was poor.

“Holoearth” contrasts with Cover’s other fan-made game brand “Holo Indie,” which encourages fans to create and sell their own games. This approach extends Hololive’s IP influence through mutually beneficial collaborations with indie game developers.

Image source: Steam

Although these fan-made “Holo Indie” games are not AAA titles, they have accumulated 61 titles so far. With active live streams by VTubers promoting them, some games have downloads reaching hundreds of thousands. This shows that even with limited technical resources, integrating member elements properly can attract fans.

Holoearth’s failure proves that the metaverse is still too early

From the author’s perspective, the failure of “Holoearth” reflects the waning interest in the metaverse concept.

Meta spent a lot on virtual reality and headsets, but “Horizon Worlds”’ graphics were underwhelming, even worse than some commercial games. While “Holoearth” showcased strengths in creating VTuber virtual concerts, it couldn’t hide the lackluster or even hollow content elsewhere.

When “Holoearth” was announced, it coincided with Meta’s metaverse, NFT land, and related hype. However, by the time it launched in 2025, market sentiment had already shifted. Even Mark Zuckerberg himself considered shutting down the VR version of “Horizon Worlds” (though he later retracted after user backlash). Whether due to immature technology, post-pandemic social shifts, or people’s return to traditional social environments, all indicate that the metaverse might still be too early for humanity.

Now, as a publicly listed company, Cover must face reality. The enthusiasm for the VTuber industry has cooled from its pandemic peak.

Hololive personnel changes have been significant, with major talents like Gawr Gura, Minato Aqua, Salome Kuroe, and Shion Murasaki leaving in recent years. Recently, they also announced major cuts to their “Holostars” male group support. The end of “Holoearth” offers Cover a good opportunity to refocus on core VTuber live streaming business.

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