Virtual hangout game Rec Room is shutting down in June

Rec Room is a free to play social hangout space available for both VR and standard gaming, and unfortunately it's going to be shutting down. Announced by the developers on March 30th, there's not long left for it as it will be inaccessible from June 1st on all platforms.

The game is a bit like Roblox in a way. People could create their own room experiences that other players could play through. And while they had plenty of players, they clearly were unable to make it profitable. They were clearly struggling, after laying off half their team back in 2025.

Their main shut-down announcement is copied below:

Rec Room will be closing down on June 1st 2026 at noon Pacific time.

Over the past decade, Rec Room grew into something amazing, reaching over 150 million players and creators along the way. Players made over half a billion friends on the platform. In total, people all around the world spent a cumulative 68 thousand years in Rec Room. The top UGC rooms saw over 500 years of play time each. That’s a lot of people having a lot of fun.

What this community built together is incredible, and something we'll always be proud of. Even today, millions of people are showing up to spend time in this fun and welcoming place every month.

Despite this popularity, we never quite figured out how to make Rec Room a sustainably profitable business. Our costs always ended up overwhelming the revenue we brought in.

We spent a long time trying to find a way to make the numbers work. 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.

We're making this decision now, while we still have the ability to wind things down thoughtfully and do right by the people who built this with us.

A shame to see another game just gone.