UPDATED JAN. 20th, 2026 WITH EXTRA COMMENTARY: Metaverse Bombshell: NETFLIX Acquires Ready Player Me—What Does This Mean for Metaverse Platforms Using Ready Player Me Avatars?

I somehow missed a major piece of news that dropped last Friday, which will definitely impact a lot of existing metaverse platforms (including big names like VRChat). On Dec. 19th, 2025, Sarah Perez wrote, in an article on the tech news website TechCrunch:

After shifting its gaming strategy to focus more on games played on the TV, Netflix announced it’s acquiring Ready Player Me, an avatar-creation platform based in Estonia. The streamer said Friday it plans to use the startup’s development tools and infrastructure to build avatars that will allow Netflix subscribers to carry their personas and fandom across different games.

Terms of the deal were not disclosed. Ready Player Me had raised $72 million in venture backing from investors, including a16z, Endeavor, Konvoy Ventures, Plural, and various angels, including the co-founders of companies like Roblox, Twitch, and King Games.

Netflix told TechCrunch the startup’s team of around 20 people will be joining the company. Of the four founders Rainer Selvet, Haver Järveoja, Kaspar Tiri, and Timmu Tõke, only CTO Rainer Selvet is moving to Netflix. It doesn’t have an estimate of how long it will be until avatars launch. Nor does it detail which games or types of games will be first to get avatars.

Following the acquisition, Ready Player Me will be winding down its services on January 31, 2026, including its online avatar creation tool, PlayerZero.

Scott Hayden, in an article written for The Road to VR website, adds:

“Our vision has always been to enable avatars and identities to travel across many games and virtual worlds,” Ready Player Me CEO Timmu Tõke said. “We’ve been on an independent path to make that vision a reality for a long time. I’m now very excited for the Ready Player Me team to join Netflix to scale our tech and expertise to a global audience and contribute to the exciting vision Netflix has for gaming.”

Avatar creation using Ready Player Me in the metaverse platform Spatial

Additionally, Ready Player Me announced its taking avatar creation services offline starting January 31st, 2026.

And, indeed, when I head over to the Ready Player Me website, the banner across the top of my screen declares:

Thank you for the chance to build together with you. Our services will become unavailable starting January 31, 2026. Please reach out to devs@readyplayer.me for any questions.

I pity the poor person on the receiving end of all those emails, because there are countless metaverse platforms which have relied on Ready Player Me as their avatar creation component, rather than try to build their own avatar design system in-house. All of these platforms now have a little over a month to come up with a replacement for the services provided up until now by Ready Player Me, which is shutting down on January 31st, 2026!

Ready Player Me’s avatar creation tools, which have been used by many virtual worlds and social VR platforms, will be shutting down on January 30th, 2026.
Among the tools affected by the NETFLIX acquisition of Ready Player Me are the Avatar Creator SDK, and the newer PlayerZero SDK, which allowed for users to create and sell avatar modifications and updates.

Ready Player Me has been the go-to solution for both gaming and metaverse companies for outsourcing much of its avatar creation process. Among those companies is VRChat. Scott Hayden opines:

Netflix hasn’t intimated it’s getting into XR gaming yet, so it’s pretty safe to say the Ready Player Me acquisition and subsequent shutdown is more or less a blow to one specific group of people: namely, VRChat users.

VRChat beginners looking to make their own avatars over the years were almost always pointed to Ready Player Me, with the platform even allowing users to upload a personal photo and generate a cartoony persona that was easy to mix-and-match with a variety of parts.

And while they weren’t always the most original avatars out there, it’s difficult to argue with the platform’s ease of use, as the web-based tool basically got you a (mostly) unique avatar that was not only cross-platform, but also already rigged for VRChat.

I’m not too worried on the impact to VRChat; as Scott goes on to write in his article, there are alternatives, albeit ones requiring a bit more technical know-how on the part of the user. VRChat also has a thriving third-party avatar creation and sale ecosystem, including a very popular series of Virtual Market avatar shopping events). VRChat will be fine. But it’s the smaller metaverse platforms like Spatial.io, which wholly rely on Ready Player Me’s services, that are now going to have to scramble to find and implement a replacement in very little time.

NETFLIX’s acquisition of Ready Player Me reminds me, at first glance, of when the fledgling metaverse platform Cloud Party (which I have written about on my blog before) was acquired by Yahoo! back in early 2014, over a decade ago. The entire small company (only 3-4 people) was “acquihired” by Yahoo!, and they shut down the Cloud party platform (with a truly memorable sendoff, as they shut down the servers, that made me emotional; this link is from a former Blogger.com blog I used to write about Cloud Party, which is still up!). The staff were absorbed into Yahoo! to work on Yahoo! projects, and God only knows what happened to them, or the projects they were hired to work on. (And, of course, Yahoo! is a shadow of its former self; does anybody still use it?)

It is very clear from this news that NETFLIX has big plans for its gaming service, and they “acquihired” the staff (and assets) of Ready Player Me, in order to use them for some future project. Their gain (for whatever project they are working on) is the loss of the hundreds of virtual worlds, games, and social VR/AR platforms which relied on Ready Player Me.

The fallout from all this is going to be fascinating to watch.

UPDATE Dec. 23rd, 2025: Another thing that came to mind after I posted this blogpost is this: metaverse-building companies who choose to outsource aspects of their services to other companies like Ready Player Me, have to be prepared for the possibility that that other company could be bought out, change the terms of their service, or even shut down. While it might be more time and money consuming to build something like an avatar system in-house, at least it’s under your control, and you don’t run the risk of having the rug pulled from under you.


Thank you to my metaverse friend Carlos Austin for the heads-up on this news.

UPDATE Jan. 20th, 2026: Today I came across an article on LinkedIn by Terry Proto for the group with the lengthy title, Reality Innovators Network for Spatial Computing, Metaverse, AI & XR – Virtual, Augmented Reality (whew, that’s a mouthful!):

8,000 developers. 6 weeks. One lesson. Netflix bought Ready Player Me, and January 31st is the deadline to replace avatar infrastructure for a lot of companies.

This isn’t the first time we’ve seen this. Altspace. 8th Wall. The pattern repeats.

The lesson? Interoperable ≠ open.

RPM worked everywhere. But it was still owned by one company. One acquisition later, and thousands of production systems are scrambling.

That’s the difference between building on convenience vs. building on ownership.

I just wrote a new article on why the spatial internet can’t be built on rented land. Have a look here: https://lnkd.in/etu3xpiF

(Note: I don’t know if you actually have to have a LinkedIn account to read this article.)

In the linked article from the above quote, Terry goes to give a very good summary of why relying on a third-party solution (even one that is interoperable), is still not as good as having open standards.

He writes:

Netflix acquired Ready Player Me on Dec 19 and 8,000 developers have until January 31st to rip out and replace their avatar infrastructure.

That’s six weeks.

Six weeks to rebuild identity systems that many teams integrated as foundational layers, not optional features. For some developers, RPM wasn’t just powering avatars. It was powering user accounts, social presence, cross-platform persistence, and the entire notion that their users could carry an identity across virtual worlds.

As Jose Antonio Tejedor Garcia of Virtway put it: “Trust built over years is breaking in weeks.”

As I write this, that six-week window has narrowed to (checks calendar) just twelve days. And, as Terry has stated, many of the 6,000 developers who used Ready Player Me, used it for a lot more than just avatar appearance. He goes on to add what I was trying to get at in my original blogpost, but does it much more concisely:

ack in June 2023, I wrote about “life after Altspace”, exploring which platforms could fill the void when Microsoft shut down one of the oldest social VR spaces. Altspace launched in 2015, got acquired by Microsoft in 2017 and closed in March 2023. The community scrambled to find new homes.

Sound familiar?

But back then, I was asking the wrong question. Finding alternative platforms doesn’t solve the underlying problem. It just kicks the can down the road until the next acquisition, the next pivot, the next “strategic realignment.”

The real question is: why do we keep building critical infrastructure on top of proprietary platforms?

I am not going to quote it all, but I do strongly recommend you read the entire article here (even if I very strongly disagree with any potential solution which requires blockchain, cryptocurrencies or NFTs, all of which by now are tainted beyond redemption by numerous scandals, scams, and rugpulls). And I will watch with keen interest as the deadline of January 31st, 2026 comes and goes.

A Slippery Slope? Sony Files Patent for Shadow Banning Misbehaving Social VR Users

Shadow banning: the practice of blocking or partially blocking a user or their content from an online community so that it will not be readily apparent to the user that they have been banned.

—Source: Wikipedia

Much has already been written about the behaviour monitoring system in the upcoming Facebook Horizon social VR platform, used to prevent inappropriate behaviour, such as this RoadtoVR article from last August:

First, all the users in Horizon are involuntarily recording each other. The last few minutes of everything that users see and hear is recorded on a rolling basis. Facebook says this recording is stored on the headset itself, unless one user reports another, at which point the recording may be sent to Facebook to check for rule violations. The company says that the recording will be deleted once the report is concluded.

Second, anyone you interact with can invite an invisible observer from Facebook to come surveil you and your conversations in real-time to make sure you don’t break any rules. The company says this can happen when one user reports another or when other “signals” are detected, such as several players blocking or muting each other in quick succession. Users will not be notified when they’re being watched.

And third, everything you say, do, and build in Horizon is subject to Facebook’s Community Standards. So while in a public space you’re free to talk about anything you want, in Horizon there a many perfectly legal topics that you can’t discuss without fear of punitive action being taken against your account.

But Sony has filed a patent for a similar way of monitoring users in social VR, where you won’t necessarily be notified if you run afoul of the rules. The abstract for the patent reads as follows:

Shadow banning a participant within a social VR system includes: receiving and forwarding an identity of the participant, who may be shadow banned; recognizing and tracking inappropriate behaviors including inappropriate language and comments, inappropriate gestures, and inappropriate movements; receiving and processing the recognized and tracked inappropriate behaviors of the participant; generating a safety rating based on the processed inappropriate behaviors; comparing the safety rating to a threshold value; and outputting a signal to label the participant as a griefer and shadow ban the griefer when the safety rating is greater than the threshold value.

So, it sounds as though, if somebody makes an obscene gesture towards another avatar in a future social VR platform where this system is implemented (e.g. flips them the bird, or grinds up against them in a sexual way), that they would then be shadow banned, perhaps even becoming invisible to other users. What sets this proposed system apart from Facebook Horizon’s is that it would be triggered WITHOUT input from someone who reports the griefer.

Stop and think about that for a moment. Who is to decide what is inappropriate gesture, or inappropriate behaviour? The rudeness of various hand gestures varies by culture around the world; will American rules and codes of conduct take precedence over those of, say, Italy or India, which might differ? Can you be flagged just for staring at another person for longer than a few seconds? What is the dispute mechanism if you discover you are shadow banned, and will it be similarly automated? This is just a slippery slope, people.

An article about the patent by Jamie Feltham on UploadVR states:

Interestingly, one proposal for this solution includes “a system configured entirely with hardware” that specifically mentions tracking the user’s movement and even their gaze. Presumably, these would be features included in the headset itself. Another suggestion mentions using an “agent” placed within the application to judge any possible offenses.

While features like these may be necessary as VR expands, it also calls into question the security and privacy of any user’s actions within that social VR experience. Figuring out that balance will no doubt be a challenge for social VR app makers in the future.

It’s also interesting to note that Sony filed this document after PSVR’s release in 2016 and that the company doesn’t really have any big social apps to its own name on the platform. Could this be an indicator that Sony is indeed planning to launch a more robust social VR feature for the upcoming PS5 VR headset? We did report last month that the company had renewed the trademark for its PS3-era social VR service, PlayStation Home, so anything’s possible.

So perhaps Sony has a future social VR platform for PSVR users up its sleeve?

Another question which arises is: if Sony’s patent is awarded, will they be able to go after platforms like Facebook Horizon, which might use similar enough features to institute patent infringement? The mind boggles at the possibilities.

One thing is clear: the social VR marketplace is evolving so quickly that laws and regulations are struggling to play catch up. Facebook, for one, is collecting all kinds of personal data about your use of Oculus VR devices such as the Quest 2 (here’s the complete list, just for the Oculus app on your iPhone).

The more data collected and analyzed, the greater the chances that you could be branded a griefer and shadow banned!

In the future, if you look at another avatar the wrong way, you might land up shadow banned! (Image source: What Is Shadow Banning? on imge)

Thanks for Rob Crasco for alerting me to this patent!

Editorial: Are Social VR Platforms Dependent Upon High-End PCVR Doomed?

Today’s Melatopia Festival in Sansar: Less than 45 Avatars Total?

This afternoon, I paid a visit to Sansar to attend the virtual version of the Melatopia South Asian festival. I had a chance to catch up with some old friends and listen to some great music. Sansar is still (to my mind) the most beautiful virtual world, with a vibrant marketplace (44,582 items and counting) providing endless avatar customization options (there was even a mini velociraptor avatar running around amidst the crowd at the concert stage!).

But all the while, I had this nagging little voice in the back of my head, asking: Where is everybody?

To the best of my knowledge (and Wookey may correct me if I am mistaken), the Melatopia event never went above a single instance, and there were never more than 45 avatars total present at the festival (and most of the time that I was there, the figure from the Codex was in the low-to-middle thirties). (UPDATE: There was briefly one time in the afternoon where the festival hit a high if 51 avatars, spawning a second instance.)

Even granted that most people would be watching the show via Twitch, Facebook, Instagram, or YouTube, I find that to be a shockingly, abysmally low attendance figure, especially compared to the multitudes that would have attended the real-life version of this festival, were it not for the coronavirus pandemic.

Frankly, this blogger has long ago given up trying to chastise Wookey for their puzzling lack of promotion of events on the Sansar platform. There’s only so many times I can write the same editorial: YOU NEED TO PAY FOR PROMOTION. YOU CANNOT EXPECT PEOPLE TO COME TO SANSAR IF YOU DO NOT PROMOTE THE PLATFORM. But my pleas (and those of many other observers) seem to have fallen on deaf ears. Whatever Wookey is doing to promote Sansar, it’s clearly not enough.

But it does raise a bigger question that I have only addressed in passing in earlier editorials discussing and dissecting the demise of the old High Fidelity and the near-death experience and resurrection of Sansar. And that question is: was it a mistake to build social VR platforms that would only run on tethered, high-end virtual reality headsets like the Oculus Rift, the HTC Vive, and the Valve Index? The collective term I and many other people use when talking about these VR headsets, all of which require a high-end Windows gaming computer with a powerful graphics card to run, is PCVR.

Let’s face facts: both now and for the foreseeable future, the clear VR headset of choice by consumers will be the wireless, standalone Oculus Quest, especially now that Facebook has released the newer, cheaper Oculus Quest 2. And Facebook will stop selling its Oculus Rift S tethered, PCVR headset (the successor to the original Oculus Rift) this coming spring. Business Insider reported:

“We’re going to focus on standalone VR headsets moving forward,” the company said in a blog post on Wednesday. “We’ll no longer pursue PC-only hardware, with sales of Rift S ending in 2021.”

The Rift line of headsets required a powerful gaming PC to power virtual reality experiences. The headset connected to the PC with a set of wires, but the latest Oculus Quest headsets are able to replicate this experience with a single detachable USB cable in addition to operating without a dedicated PC.

As such, Facebook isn’t outright killing its PC-driven virtual reality efforts. It will continue supporting higher-end, PC-powered virtual reality on the Quest line of headsets. 

“We’ve seen significant growth in PC VR via Oculus Link,” the blog post said, “and the Rift Platform will continue to grow while offering high-end PC VR experiences like ‘Lone Echo II’ and ‘Medal of Honor: Above and Beyond’ well into the future.”

Two years ago, TechCrunch reported on the disagreements within Facebook over the company’s decision to focus on standalone as opposed to high-end, tethered headsets, saying that Brendan Iribe, the co-founder and former CEO of Oculus, was “leaving Facebook  following some internal shake-ups in the company’s virtual reality arm last week that saw the cancellation of the company’s next generation ‘Rift 2’ PC-powered virtual reality headset, which he had been leading development of”.

If Facebook is leaving the high-end PCVR market, what does that mean for the future of social VR platforms which either do not run on the Quest, like Sansar, or do not run at their full technical capacity, like VRChat? (I wrote about my earlier experiences running VRChat on my Oculus Quest here. Although I’m sure the situation has improved somewhat since then, the fact remains that you still need PCVR to really experience everything that VRChat has to offer.) Are those platforms that run best (or only) on PCVR doomed?

No. So relax. (Yeah, all right, I admit that was a click-bait blogpost title. Sue me.)

While the market for high-end PCVR might mature more slowly than that of wireless VR headsets (and definitely more slowly than most overconfident observers had originally predicted), eventually it will come. Devices may come and go in popularity, but the overall trend is clear: ever more data being pushed to your headset, creating ever more detailed environments. Eventually, that screen door effect that can sometimes make it difficult to read text in a VR headset will vanish. Visual fidelity will only improve from here on in. Consumers and businesses will demand it, and they will buy it. It’s inevitable.

While we do not yet know what future headsets various tech companies have on their drawing boards, we can be assured that other companies will definitely step into the PCVR market while Facebook is stepping out, and up the VR/AR/XR game (many eyes are watching to see what Apple will do, for example). As I like to say, a rising tide lifts all boats. I believe that many people who get their first taste of VR from an Oculus Quest will no doubt graduate to more powerful, tethered devices. (Even Facebook may decide to change their minds at some point in the future, particularly if they should see any potential competitors do well.)

I myself have already placed my order for a Valve Index kit to replace my trusty, four-year-old Oculus Rift, as part of my personal boycott of Facebook/Oculus products and services (more info here). I have heard through the grapevine that they are selling well since Facebook’s decision to force Oculus device users to get Facebook accounts, which is not sitting well with many early VR adopters at all.

And I very much look forward to visiting future virtual festivals in Sansar in my shiny new Valve Index!

Herding Cats (Again): Organizing and Categorizing My List of Social VR Platforms and Virtual Worlds

Git along, l’il kitties! Hyah! Hyah!!

I woke up bright and early this morning, showered and shaved, brewed a large pot of black coffee, and immediately set to work on my task for the day: trying to impose some semblance of order on my sprawling list of over 150 different virtual worlds, social VR platforms, and other metaverse products which I have written about on the RyanSchultz.com blog over the past three years. I’ve been putting this task off for too long; it’s time. I mean, I originally said I was going to do this a year ago!

I thought I would start by creating six rough, top-level categories as follows:

  • Virtual Worlds Which Do NOT Support Users in Virtual Reality Headsets (e.g. Active Worlds, Kitely, Second Life)
  • Virtual Worlds/Social VR Which Support Both Virtual Reality Users and Non-VR/Desktop Users (e.g. Sansar, Sinespace, Tivoli Cloud VR)
  • Social Virtual Reality Platforms Which Do NOT Support Desktop/Non-VR Users (e.g. Anyland, Facebook Horizon)
  • Blockchain and Cryptocurrency-Based Social VR Platforms and Virtual Worlds (e.g. Cryptovoxels, Decentraland, Somnium Space)
  • Social Augmented Reality (AR) Platforms Which Support Users in AR Headsets (e.g. Avatar Chat, Spatial, Spatiate). As we are only in the first generation of augmented reality headsets available for purchase by consumers, e.g. the much-hyped but now struggling Magic Leap One and the Microsoft’s HoloLens, there’s obviously not a lot here yet, but give it time (and there are consistent rumours of a future AR headset to be released by Apple, sometime in 2022 or 2023). Please note that I do not consider cellphone-based “AR” (e.g. Pokémon Go) to be true augmented reality.
  • Stuff Which Doesn’t Fit Elsewhere: Miscellaneous Worlds, Platforms, and Products Covered on this Blog (e.g. the new, 2D-with-3D-audio iteration of High Fidelity)

Then, to start, I would simply copy and paste six copies of my original list under each of these six headings, and then go about my work by deleting those items which do not fit under that category, starting with the A’s and working my way through to the end of the list (currently 3DXChat). Speaking of 3DXChat, I have to decide what to do about the very few worlds I have written about that are pretty much exclusively focused on sexual content (although they, too, can sometimes serve a non-sexual, social purpose). I’m not interested in trying to categorize purely adult/sexual worlds, however; I will leave the herding of those particular kitties to others 😉

Some products on my original list, like Avakin Life and IMVU, have literally dozens of similar products, all pitched at the teen/tween market (another category I do not wish to cover on this blog).

I had breezily assumed that this reorganizing task would take me a couple of days at most. After all, I already had the starting list, right? However, it’s been quite some time (in some cases, years) since I last looked at some products and platforms. In quite a few instances, projects have since shut down or have been put on hold (a lot of blockchain/crypto startups fall into this category). So, this probably will take me several weeks of work, instead of several days.

I also have to find some way to integrate my previous attempts at herding cats:

Also, I want to include pointers to other people and organizations on the internet that are trying to do the same sort of work, such as XR Collaboration: A Global Resource Guide (which I first wrote about here), and Niclas Johansson’s report The Ultimate Guide to Virtual Meetings with VR/AR (which I wrote about here and here). Compared to when I started this blog three years ago, there’s now quite a bit of work going on in this area, particularly in corporate applications of social VR! Even YouTube vloggers like Nathie have jumped on board. It’s wonderful to see.

So, I will be beavering away on this, making use of my two-week vacation to get a good head start on the project. I’ll keep you posted!