Rec Room, once hailed as a promising giant in the social gaming world, announced Monday it would be shutting down its platform on June 1.
If you’re a fan of the platform or have ever spent time creating or exploring in its virtual worlds, this news probably hits hard. Over the years, Rec Room attracted more than 150 million players, becoming a go-to spot for social gaming, especially during the pandemic when everyone was looking for ways to connect online.
Founded in 2016 by Nick Fajt and Cameron Brown, Rec Room garnered significant attention and investments, reaching a valuation of $3.5 billion in December 2021.
Despite all those players, Rec Room struggled to figure out how to actually make money. Costs skyrocketed, and the revenue just couldn’t keep up. Even with a strong community and new features like Maker AI for game creation, the financial side didn’t pan out, leading to significant layoffs earlier this year.
“We spent a long time trying to find a way to make the numbers work,” the company wrote in its announcement on Monday. “But with the recent shift in the VR market, along with broader headwinds in gaming, the path to profitability has gotten tough enough that we’ve made the difficult decision to shut things down.”
Starting now, no new accounts or friend requests can be made. Creators will no longer be able to share monetized content, and the platform will go dark at 12 p.m. PT on June 1.
DW Deutsch 
