Japanese virtual reality developer monoAI Technology reported wider losses for 2024 as its bet on metaverse and XR technology solutions failed to gain significant traction.
The Tokyo-based company posted a net loss of ¥585 million (US$3.9 million) for the year ended December, nearly triple the ¥203 million loss recorded a year earlier. Revenue rose 14.8% to ¥1.43 billion, primarily driven by its XR event services and quality assurance testing division.
The deeper losses stemmed from a ¥294 million impairment charge on fixed assets, highlighting the challenges faced by the company in monetizing its virtual reality platforms. Operating losses expanded to ¥281 million from ¥174 million in the previous year.
MonoAI’s core product, XR CLOUD, enables companies to host virtual events and create hybrid communication spaces. However, the platform’s adoption has been slower than anticipated as corporations remain cautious about investing in metaverse technologies.
Looking ahead, monoAI projects minimal revenue growth of 0.5% to ¥1.44 billion for 2025. While the company expects to narrow its net loss to ¥183 million, the forecast suggests continued pressure on its business model centered around virtual reality solutions and metaverse services.
The company’s struggles reflect broader skepticism about the immediate commercial viability of metaverse technologies, even as it continues to expand its offerings across virtual events, corporate solutions, and quality assurance testing services.
