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AltspaceVR is shutting down as Microsoft’s mixed reality division shrinks

An image showing a group of avatars in Altspace VR
Image: Microsoft

Microsoft will shut down AltspaceVR, the social virtual reality (VR) platform it acquired in 2017 (via VentureBeat), on March 10th, 2023. The company shared the news in a blog post just days after it announced job cuts affecting 10,000 workers, stating the move will help shift focus “to support immersive experiences powered by Microsoft Mesh.”

AltspaceVR emerged as one of the very first social VR experiences in 2015 alongside other platforms like VRChat and Rec Room. While the startup nearly shut down in 2017 due to financial issues, Microsoft scooped up the platform as part of its efforts to build out its own mixed-reality ecosystem. Microsoft says users can download their data from AltspaceVR before the shutdown.

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