AltSpaceVR is one of the original social VR platforms, founded in 2013 and launched in 2015. The company was acquired by Microsoft in 2017 and became a part of their Mixed Reality division. Microsoft has announced wide-scale layoffs across their Mixed Reality division and it looks like AltspaceVR may have been a casualty.
The layoffs at Microsoft also likely mean the end of current Mixed Reality projects at the company, including the well know in industry headset the Hololens. Microsoft seems to be leaving the path open for Meta, Apple, and others to battle it out for dominance in the industry for at least the near future.
AltspaceVR have recently made the announcement on their official website that the service will be shutting down on March 10th, 2023.
According to numbers published on Steam Charts, it looks like popularity of AltspaceVR had peaked around 2020, and gradually declined since then. This writer has fond memories of AltspaceVR as my first social VR experience way back in 2018 on the Oculus Go headset. Even with the limitations at the time, it was a powerful experience. The service was one of the pioneers of VR comedy clubs at the time as well.
Other social VR platforms like VRChat, Horizon Worlds, NEOS VR and others will need to carry the torch from here. AltspaceVR may be soon gone, but it won't be forgotten.