""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.""
""Despite all those players, Rec Room struggled to figure out how to actually make money. Costs skyrocketed, and the revenue just couldn't keep up.""
Rec Room, a social gaming platform founded in 2016, will cease operations on June 1 after failing to achieve profitability despite attracting over 150 million players. The platform reached a valuation of $3.5 billion in December 2021 but struggled with rising costs and insufficient revenue. Recent layoffs and a shift in the VR market contributed to the decision. As of now, new accounts and friend requests are disabled, and monetized content sharing will end before the shutdown.
Read at TechCrunch
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