Social gaming platform Rec Room, as soon as valued at $3.5B, is shutting down

Rec Room, as soon as hailed as a promising big within the social gaming world, announced Monday it could be shutting down its platform on June 1. 

If you’re a fan of the platform or have ever frolicked creating or exploring in its digital worlds, this information in all probability hits laborious. Over the years, Rec Room attracted greater than 150 million gamers, turning into a go-to spot for social gaming, particularly throughout the pandemic when everybody was on the lookout for methods to attach on-line. 

Founded in 2016 by Nick Fajt and Cameron Brown, Rec Room garnered vital consideration and investments, reaching a valuation of $3.5 billion in December 2021. 

Despite all these gamers, Rec Room struggled to determine methods to truly earn money. Costs skyrocketed, and the income simply couldn’t sustain. Even with a robust group and new options like Maker AI for sport creation, the monetary aspect didn’t pan out, resulting in vital layoffs earlier this yr. 

“We spent a long time trying to find a way to make the numbers work,” the corporate wrote in its announcement on Monday. “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.” 

Starting now, no new accounts or good friend requests may be made. Creators will not be capable to share monetized content material, and the platform will go darkish at 12 p.m. PT on June 1.