Rec Room closed due to inability to become sustainably profitable

Rec Room closed due to inability to become sustainably profitable

Rec Room, a VR conversation and game platform, will cease operations on June 1, 2026. The title will be closed exactly ten years after its release.

Rec Room developer Rec Room stated that they never found out how to efficiently monetize the experience, which was offered on a variety of VR platforms such as Meta Quest, PlayStation VR, and Pico.

The game was also playable on console and PC without VR gear, and it included a suite of user-generated content (UGC) tools that allowed users to construct their own play experiences known as ‘Rooms.

Rec Room was free to use; however, it did have purchaseable in-game currency in the form of tokens that could be spent on cosmetics. Rec Room Plus, an optional premium membership for $7.99/month, provides unique privileges like discounts, exclusive merchandise, and a monthly token allowance.

The top UGC rooms had almost 500 years of playtime each. That is a large group of individuals enjoying a lot of fun. This community has accomplished tremendous things, which we will always be proud of. Even now, millions of people visit this joyful and welcoming place each month,” according to a blog post announcing the closure.

Our expenses always exceeded the revenue we generated. We spent a long time trying to figure out how to make the numbers work. But with the current shift in the VR market, combined with larger challenges in gaming, the route to profitability has become so challenging that we’ve made the sad decision to shut things down.”

Rec Room had already cut off almost half of its personnel in August 2025, citing the need to change depending on the “financial trajectory of the company.”

In 2021, the studio raised $145 million, valued at $3.5 billion. It raised over $300 million in capital over its history.