Rec Room, a virtual reality platform, is scheduled to cease operations in June 2026

Image credit: Rec Room Inc.

Rec Room, a social VR gaming platform, has declared it will cease operations on June 1, 2026.

In a recent announcement on their blog, Rec Room Inc. conveyed that while their platform achieved significant success, they were unable to develop a sustainable profit model. They stated, "Our expenses constantly surpassed the revenue generated." Efforts to balance the financials were unsuccessful due to significant shifts in the VR sector and broader challenges within gaming, leading to the tough decision to discontinue the platform. The company decided to proceed with this course of action now, enabling a careful wind-down and respecting the contributions of team members.

As of June 1, users will no longer have the ability to access or use Rec Room. Additionally, all services including the Rec Room Studio will cease, and the official website will be removed.

The recent changes also indicate that no new accounts can be created, nor can users add friends, subscribe to Rec Room+, earn token rewards, or develop new monetized user-generated content.

Starting May 1, the redemption of gift cards for tokens will be discontinued; however, players are still permitted to use their existing tokens until the closure.

In August of the previous year, approximately 50% of the workforce at Rec Room Inc. was dismissed.

Cameron Brown, CCO, stated, "The outcome we face is not what was desired, and both Nick [CEO and co-founder] and I are accountable for our current situation." Despite substantial investments in creation tools across various platforms including PC, VR, consoles, and mobile, the most effective content generation originated from users on PC and VR. Brown further explained the ongoing efforts weren't effective for the team, company, or players, attributing these mismatches to a failure in leadership. He emphasized the need for a reset to correct the course.

The game developer based in Seattle commenced its journey in April 2016. In 2021, it secured $145 million in funding, which brought their valuation to $3.5 billion.