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 about 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

Japan’s VTuber giant Hololive’s parent company Cover suddenly announced yesterday (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 explore the reasons behind the failure of this expensive project.

Holoearth was initiated 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. Hololive, which owns 47 channels with over 63 million total subscribers, is a well-known VTuber talent agency in the industry.

Image source: VTuber Ranking

With a large fan base, Cover announced the “Holoearth” project in 2021, and launched the official version in 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 of launch.

Regarding the reasons for “Holoearth”’s failure, Yagoo admitted at the financial report 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 effectively.

After recognizing a loss of nearly 3.2 billion yen, Cover’s management team refunded part of their salaries voluntarily. 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 a fatal flaw: Holoearth feels like a semi-finished product

The announcement of Holoearth’s end 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 beta version. Expectations for rich storylines involving Hololive members were unmet, as the official version lacked Hololive’s distinctive features. Additionally, server stability was poor.

“Holoearth” is contrasted with another fan-made game brand by Cover called “Holo Indie.” This brand mainly encourages fans to create and sell their own fan games. By mutually benefiting with fan developers, it extends Hololive’s IP influence.

Image source: Steam

Although these fan-made “Holo Indie” games are not high-quality AAA titles, they have accumulated 61 titles so far. With active live streams by VTubers introducing these games, some downloads have even reached 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” is a reflection of the metaverse concept cooling down.

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

The “Holoearth” project was announced during the peak of Meta’s metaverse, NFT land hype, but by 2025, market sentiment had already shifted. Even this year, Zuckerberg himself considered shutting down “Horizon Worlds” VR version (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 already cooled from its pandemic peak.

Hololive personnel changes have been significant, with major talents like Gawr Gura, Minato Aqua, Salome Kuroe, and Shion Sazaki leaving in recent years. Recently, they also announced major 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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