Gaming platform Rec Room, once valued at $3.5B, is shutting down

Rec Room, once hailed as a trusted giant in gaming, he announced Monday will be closing its platform on June 1.

If you are a fan of the platform or have spent time creating or exploring its virtual worlds, this article probably has a lot to do with it. Over the years, Rec Room has attracted more than 150 million players, becoming a gaming hub, especially during the pandemic when everyone is looking for ways to connect online.

Founded in 2016 by Nick Fajt and Cameron Brown, Rec Room attracted a lot of attention and funding, which came at a price tag. $3.5 billion in December 2021.

Despite all these players, Rec Room struggled to figure out how to make money. Prices skyrocketed, and the money was unaffordable. Even with a strong and innovative team as an AI developer in game development, the financial side has not been completed, which led to the implementation of the project earlier this year.

“We spent a lot of time trying to find a way to make the numbers work,” the company wrote in an announcement Monday. “But with the recent evolution of the VR market, and the increasing popularity of gaming, the process of making a profit has become so difficult that we have made the difficult decision to close things down.”

From now on, no new accounts or friend requests can be made. Developers will no longer be able to share revenue, and the platform will go dark at 12pm PT on June 1.