News Summary

Rec Room, a popular Roblox-style VR game, is shutting down after nearly a decade in operation. Despite amassing over 150 million users, the platform struggled to convert this engagement into a profitable business model. The developers announced that Rec Room will officially shut down on June 1st, citing difficulties in achieving profitability amidst changes in the VR market and broader challenges in the gaming industry. Users will no longer be able to create new accounts or subscribe to the premium service, though some previously subscription-locked features will be accessible for free until the closure. The company, which once held a $3.5 billion valuation, admitted that its costs consistently outweighed its revenue, leading to the decision to cease operations. Some of Rec Room’s assets have been acquired by Snap, and several employees will transition to the social media company.