Rec Room to Shut Down on June 1, 2026

Rec Room, the Seattle-based social gaming platform that allowed millions to create and share virtual experiences across devices including VR headsets, consoles, and PCs, will shut down on June 1, 2026, exactly 10 years after its launch.

The company announced the closure on Monday, citing its inability to achieve sustainable profitability despite reaching more than 150 million users worldwide. In a blog post, Rec Room stated that operational costs consistently outpaced revenue, even as monthly engagement remained strong with millions of active players. "Despite this popularity, we never quite figured out how to make Rec Room a sustainably profitable business," the post read. "Our costs always ended up overwhelming the revenue we brought in. We spent a long time trying to find a way to make the numbers work. 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."

Founded in 2016 by Nick Fajt, Cameron Brown, and a team under the name Against Gravity, Rec Room grew rapidly during the COVID-19 pandemic as users sought virtual spaces for connection...