Metaverse Innovation Canvas: A Tool for Extended Reality Product/Service Development

This study investigated the factors contributing to the failure of augmented reality (AR) and virtual reality (VR) startups in the emerging metaverse landscape. Through an in-depth analysis of 29 failed AR/VR startups from 2016 to 2022, key pitfalls were identified, such as a lack of scalability, poor usability, unclear value propositions, and the failure to address specific user problems. Grounded in these findings, we developed the Metaverse Innovation Canvas (MIC) a tailored business ideation framework for XR products and services. The canvas guides founders to define user problems, articulate unique XR value propositions, evaluate usability factors such as the motion-based interaction load, consider social/virtual economy opportunities, and plan for long term scalability. Unlike generalized models, specialized blocks prompt the consideration of critical XR factors from the outset. The canvas was evaluated through expert testing with startup consultants on five failed venture cases. The results highlighted the tool's effectiveness in surfacing overlooked usability issues and technology constraints upfront, enhancing the viability of future metaverse startups.