""Despite this popularity, we never quite figured out how to make Rec Room a sustainably profitable business. 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.""
""Over the last decade, players made over half a billion friends on the platform, spending a cumulative 68 thousand years in Rec Room; with millions still showing up each month.""
""We are pulling the plug now, while we still have the ability to wind things down thoughtfully and do right by the people who built this with us.""
Rec Room, a social gaming platform founded in 2016, will shut down in June after reaching over 150 million players. The company struggled to achieve sustainable profitability, with costs consistently exceeding revenue. Recent shifts in the VR market and challenges in the gaming industry contributed to this decision. Once valued at $3.5 billion, Rec Room allowed users to create and share games, amassing significant engagement. Users can no longer create accounts or add friends, but active memberships remain valid until June 1.
Read at Fast Company
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