Bernard Kim, the CEO of Match Group, has requested Tinder’s Hyperconnect division, which will be bought in 2021, to curtail its plans for metaverse dating.
In his shareholder letter, Kim stated that the team had to “not invest extensively” in the metaverse due to the “uncertainty” surrounding the viability of virtual worlds. Match also attributed a $10 million operating loss in the most recent quarter to the Hyperconnect acquisition, compared to a $210 million operating profit in the same time a year earlier.
Following dubious test findings, the business is also “stepping back” from its ambitions to roll out its in-app Tinder Coins, Kim added. He didn’t completely get rid of the virtual money, but he wanted it to “more efficiently contribute” to Tinder’s earnings. The CEO continued that any virtual goods would have to significantly advance Tinder’s next stage of development.
At the same time, Tinder’s leadership is experiencing change. After joining the organization in September of last year, CEO Renate Nyborg is leaving. Although Kim claimed that Match was looking for a replacement, it is unclear why she is departing.
There’s no denying that Tinder faces an uncertain future. In addition to the loss suffered by Tinder, Match predicted only modest growth and stated that it was still adjusting to behavioral changes brought on by the pandemic. Due to vaccines making it safer to meet people, there was an increase in activity in the second half of 2021, but there hasn’t been one in 2022. According to Kim, first-timers’ willingness to try online dating hasn’t fully recovered from the pandemic. A more aggressive product rollout strategy, such as live video and “alibi” dating services, is what the executive is hoping to encourage.
Tinder’s initial plans with Metaverse
To enable more virtual experiences within the application, this platform will make use of technologies like virtual reality, augmented reality, and more. Its rerouting resulted in the growth of Tinder Explore, which will be a key element in creating its economy of virtual products. In addition to introducing Tinder coins in 2022, the app will begin designing and producing virtual items, along with a corresponding value structure and a location to display them. In essence, Tinder is interested in learning how these virtual items should be presented, gathered, and possibly gifted.
Better than the traditional Tinder Swipe, the metaverse dating platform is an interface between many users that enables them to share various and intricate interactions. The concept of avatars, a highly developed articulation of an individual, is central to dating applications with a metaverse framework. They create virtual environments, including restaurants, pubs, and bus stops that may change into gathering spots for avatars powered by constant music.
Long-distance couples have found that online dating services have become much more significant. Long-distance couples can enjoy being together beyond the “traditional” video conference using metaverse dating.