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

Japanese VTuber giant Hololive’s parent company Cover announces that the metaverse platform “Holoearth” will shut down, recognizing a loss of approximately 3.19 billion yen. This article explores the reasons behind the failure of this costly project.

Holoearth is about to shut down, VTuber metaverse 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 simultaneously recognize a special loss of 8B yen in their latest financial report, sparking heated discussion 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 explore the reasons behind the project’s ultimate failure after heavy investment.

Holoearth was launched during the peak of the metaverse craze

In recent years, VTuber has emerged as a new type of YouTuber, quickly moving 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 a formal release scheduled for April 2025.

“Holoearth” is a metaverse project based on the Hololive universe, featuring sandbox, survival adventure, and virtual concert gameplay. 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 (Yoshihiro Tsubouchi) once stated that he hoped to create a dedicated social 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 a 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 “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 termination sparked lively discussions among Taiwanese and Japanese communities.

On the PTT forum’s West Lounge, Taiwanese netizens generally believe that the game lacks engaging content, which is related 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. Expectations for rich storylines featuring Hololive members were unmet, as the official version lacked Hololive’s distinctive features. Additionally, server stability was poor.

“Holoearth” is contrasted with Cover’s other fan-made game brand “Holo Indie,” which encourages fans to create and sell derivative 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 millions. 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 decline of the metaverse concept.

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

When “Holoearth” was announced, it coincided with Meta’s metaverse, NFT land craze, but by 2025, market sentiment had shifted. Even this year, Zuckerberg himself considered shutting down the VR version of “Horizon Worlds” (though he retracted after player backlash). Whether due to immature technology, post-pandemic social shifts, or the return to traditional social environments, it repeatedly proves that the metaverse is still 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 have already undergone major changes, with the recent loss of stars like Gawr Gura, Minato Aqua, Shao Kuroe, and Shion Sazaki. They also announced significant cuts to their “Holostars” male group support. The end of “Holoearth” is a good opportunity for Cover to refocus on core VTuber live streaming business.

Further reading:
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