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Snap Acquires Assets From Rec Room as Social Gaming Platform Announces Shutdown

Rec Room Inc announced on Monday that its social gaming platform will shut down on June 1, 2026, ending a decade of service to over 150 million players.
Despite reaching over 150 million players, the company admitted that "costs always ended up overwhelming the revenue we brought in," citing recent VR market shifts and broader gaming headwinds.
Users spent a cumulative 68 thousand years in the virtual space, with top UGC rooms seeing over 500 years of play time each; the studio is providing data export tools via Steam PC builds.
Snap, the tech and social media company, acquired some studio assets and will bring employees aboard, while players can request refunds for unused subscriptions through June 15.
The closure mirrors broader industry struggles; last week, Epic Games laid off more than 1,000 employees amid Fortnite engagement challenges, as Rec Room CEO and co-founder Nick Fajt emphasized the team will "wind things down thoughtfully.

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18 Articles

TechCrunch

Center

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

Rec Room, the social platform for user-generated games and virtual experiences, will shutter on June 1.

2 hours ago·United States

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Complex

Lean Left

Rec Room, a Roblox Rival Valued at $3.5B, Is Shutting Down

Rec Room, a social gaming platform with more than 150 million users and a rival to Roblox, is shutting down.

5 hours ago

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Kotaku

Lean Left

Rec Room Shutting Down Soon After 10 Years

The free-to-play Roblox-like game was many people's first foray into online VR gaming

6 hours ago

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The US Sun

Lean Right

Huge Roblox rival played by 150 million is shutting down

THE videogame was once worth $3.5billion and is a major rival to fan favourite Roblox. Its shutdown came as a shock to many of the game’s...

9 hours ago·New York, United States

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GeekWire

Center

Snap acquires assets from Rec Room as social gaming platform announces shutdown

Snap has acquired select assets from Rec Room Inc., with some employees joining the Spectacles hardware subsidiary, as the Seattle-based social gaming company shuts down its platform on June 1.

17 hours ago·Seattle, United States

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Times of India

Lean Right

Rec Room, the $3.5B social gaming platform, to shut down after failing to find path to profitability

Social gaming platform Rec Room will cease operations on June 1, citing persistent challenges in achieving profitability despite its popularity. The company struggled to balance costs with revenue, leading to the difficult decision to shut down. This closure follows earlier workforce reductions and broader industry headwinds impacting the VR and gaming markets.

17 hours ago·India

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