Rec Room VR Platform to Cease Operations by June 2026

The social virtual reality gaming platform Rec Room is set to shut down on June 1, 2026. In a recent blog post, Rec Room Inc. revealed that despite its success, the company was unable to achieve long-term profitability. The developer stated, "Our expenses consistently surpassed our revenue, and we were unable to find a viable solution to make the platform financially sustainable." The decision to close comes amid significant changes in the VR market and challenges in the gaming industry. As of June 1, users will no longer be able to access or play Rec Room, and the website along with Rec Room Studio services will be discontinued. Key features such as creating new accounts, adding friends, and signing up for Rec Room+ have already been disabled. Furthermore, the ability to redeem gift cards for tokens will end on May 1, although users can continue to spend existing tokens until the platform's closure. This announcement follows a significant reduction in staff last August. The company's Chief Creative Officer, Cameron Brown, acknowledged the failure, stating, "We invested heavily in creation tools but failed to align the needs of our team, company, and players." Founded in April 2016, Rec Room Inc. had secured $145 million in funding by 2021, valuing the company at $3.5 billion.