technology

Rec Room to shut down June 1

The US social gaming platform, once valued at $3.5 billion and used by over 150 million players, will close on June 1 after failing to achieve profitability.

Mar 31st 2026 ยท United States

Insights

  • Rec Room will stop operating at 12 p.m. PT on June 1.
  • No new accounts or friend requests can be made and creators can no longer share monetized content.
  • The platform reached a $3.5 billion valuation in December 2021 and attracted more than 150 million users since 2016.
  • Rising operating costs and insufficient revenue led to layoffs earlier this year and the decision to close.
  • The company cited a shift in the VR market and broader gaming headwinds as reasons it could not reach profitability.