VR social platform Rec Room announces shutdown

Social gaming virtual reality platform Rec Room has confirmed that it is shutting down in June due to an unsustainable business model resulting in continued losses.

The details:

• As announced in a blog post, developer Rec Room Inc. revealed that despite once being valued at a whopping $3.5 billion USD, the company "never quite figured out how to make Rec Room a sustainably profitable business." As a result of the industry moving away from VR in recent years, resulting in declining revenues and increased operational costs, the platform will now be shut down on June 1, 2026.
• Starting this week, no new accounts will be created, players will be unable to sign up for the premium Rec Room+ service, friend requests cannot be sent, and no new monetized user-generated content can be created. Players will no longer be able to redeem gift cards for in-game currency beginning May 1, but any existing currency on their account can be used until June 1.
• Rec Room, founded in 2016 by Nick Fajt and Cameron Brown, has been played by over 150 million users worldwide, drawing much attention during the COVID-19 pandemic as players flocked to socializing online. However, interest in online social platforms and VR has continued to decline ever since, with the company laying off around half of its workforce in August 2025.