Rec Room, once hailed as a promising giant within the social gaming world, announced Monday it could be shutting down its platform on June 1.
Should you’re a fan of the platform or have ever hung out creating or exploring in its virtual worlds, this news probably hits hard. Over time, Rec Room attracted greater than 150 million players, becoming a go-to spot for social gaming, especially in the course of the pandemic when everyone was searching for ways to attach 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 determine tips on how to actually become profitable. Costs skyrocketed, and the revenue just couldn’t sustain. Even with a powerful community and recent features like Maker AI for game creation, the financial side didn’t pan out, resulting in significant layoffs earlier this 12 months.
“We spent a protracted time trying to search out a option to make the numbers work,” the corporate wrote in its announcement on Monday. “But with the recent shift within the VR market, together with broader headwinds in gaming, the trail to profitability has gotten tough enough that we’ve made the difficult decision to shut things down.”
Starting now, no recent accounts or friend requests may be made. Creators will not have the opportunity to share monetized content, and the platform will go dark at 12 p.m. PT on June 1.