Snap shuts down its AR department

Credits: Snap

Snap inc has decided to shut down its business-focused AR unit. The division, also known as ARES or Augmented Reality Enterprises Services, was focused on providing AR services to businesses and brands for their shopping units.

Bloomberg first reported the impending shutdown, based on a memo sent out by Snap Inc Chief Executive Officer Evan Spiegel in the company.

The memo acknowledged that the move towards the shutdown comes after with the advent of generative AI.

He said that AI has made it easier for companies to make their own try-own experiences for their customers, making it difficult for Snap to remain competitive.

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Speigel also acknowledged that given the nascent stage of the department, further investment would be too costly for the company, instead opting to focus its resources toward its core business instead.

Snap also had to let go of, approximately, 170 of its employees who were part of the division.

The shutdown for the segment comes shortly after its launch earlier this year in March.

The unit predominantly focused on providing its AR tech to businesses and brands allowing them to use the tech in their own apps, sites and stores.

Too soon for the future?

Future-oriented departments are slowly being shut down due to fading trends and lack of suitable technology in the current times.

In March, this year, Disney also shut down its Next Generation Storytelling & Consumer Experiences group which housed the company’s metaverse ambitions.

On the other hand, last month, Snap also announced a partnership with Microsoft advertising that will focus on providing sponsored links for the social media platform’s AI product.