""We never quite figured out how to make Rec Room a sustainably profitable business, and our costs always ended up overwhelming the revenue we brought in.""
""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.""
""Doing the layoffs when it did gave us the ability to take care of people, while still setting up Rec Room for years, not months of funding.""
""Epic Games laid off more than 1,000 employees due to a downturn in Fortnite engagement that meant the company was spending significantly more than we're making.""
Rec Room, a social gaming platform, will cease operations on June 1st after failing to achieve sustainable profitability. The company reached over 150 million users but struggled with costs exceeding revenue. Recent shifts in the VR market and broader gaming challenges contributed to this decision. The company previously laid off half its staff to manage funding better. Other platforms like Meta's Horizon Worlds and Epic Games are also facing difficulties, indicating a trend in the social gaming industry.
Read at The Verge
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