Social gaming platform Rec Room is shutting down


Rec Room Announces Closure: What's Next for the Popular Social Gaming Platform?

After more than a decade in the gaming industry, the social gaming platform Rec Room, which captivated over 150 million players, is set to close its doors permanently on June 1, as announced on Monday.

Despite its significant user base and widespread appeal, the Seattle-based company struggled to find a profitable business model, ultimately leading to this difficult decision. “Even with our popularity, we never managed to transform Rec Room into a sustainably profitable venture,” the company shared in a reflective blog post. “Our operational costs consistently overshadowed our revenue.”

Founded in 2016 by Nick Fajt, Cameron Brown, and a team of visionary co-founders under the name Against Gravity, Rec Room quickly became a beloved platform. It enabled players to create and share games, virtual goods, and experiences across a variety of devices, including phones, consoles, PCs, and VR headsets.

The financial strain was evident earlier this year when Rec Room laid off 16% of its workforce in March 2025. The situation escalated five months later with a significant reduction of nearly half the remaining staff, cutting 141 positions and reducing the team size from around 310 employees to just over 100.

Rec Room was founded in 2016 by Nick Fajt, Cameron Brown and other co-founders under the name Against Gravity. The startup built a cross-platform social gaming app that let players create and share games, virtual goods and experiences across phones, consoles, PCs and VR headsets.

Rec Room laid off 16% of its staff in March 2025 and then cut roughly half its remaining workforce five months later, eliminating 141 positions and shrinking from about 310 employees to just over 100.

The company blamed the “recent shift in the VR market” and “broader headwinds in gaming” for its inability to turn a profit. It’s not alone: Meta announced this month it was scaling back its Metaverse and shutting down Horizon Worlds, the virtual reality social network.

Users logging on Monday found the platform already beginning to wind down. Rec Room immediately blocked account creation, friend requests and new subscriptions to its Rec Room Plus membership. Token purchases will end May 1, creator earnings will stop May 18, and the platform will go fully dark at noon Pacific Time on June 1.

Cameron Brown, Rec Room’s chief creative officer known to users as “Gribbly,” “often described Rec Room as ‘an explosion of love and creativity all around the world,’” the company wrote. “We hope it was that for you. It certainly was for us.”

Rec Room users can download their photo archives and a personal “final report card” via the platform’s website before June 1. Gift cards can be redeemed through April 30, and unused balances can be refunded through June 15.

You May Also Like

Here's why experts say now is an ideal time to protect yourself from flu

Experts Say Now Is the Ideal Time to Protect Yourself From Flu

October is here, making it a good time to schedule a flu…
Woman's routine Uber ride takes alarming turn after her driver misses the exit

Woman’s Uber Ride Takes Alarming Turn After Driver Misses Exit

A late-night Uber ride has sparked a broader conversation about how passengers…
FBI Director Kash Patel engaged to country singer Alexis Wilkins

FBI Director Kash Patel Announces Engagement to Singer Alexis Wilkins

WASHINGTON — FBI Director Kash Patel is engaged to country singer Alexis…
FBI joins probe in murder of Christian teacher shot in Ohio home as 'American Idol' husband, children slept

American Idol Alum Caleb Flynn Faces In-Laws After Murder Conviction

Former “American Idol” contestant Caleb Flynn is set to be sentenced Monday,…
Supreme Court wrestles with energy companies' bid to block major climate-change lawsuit

Supreme Court Weighs Energy Firms’ Bid to Block Major Climate Suit

Washington — The Supreme Court on Monday wrestled with a complex legal…
Sen. Kennedy floats 2028 prez bid if 'a bunch of goobers run' — as he goes after Trump

Louisiana Sen. John Kennedy Floats 2028 Bid, Takes Aim at Trump

WASHINGTON — Sen. John Kennedy, known for his rapid-fire quips, is not…
Elderly cyclist, 71, killed after hitting dog, flipping over handlebars in Central Park

71-Year-Old Cyclist Dies After Hitting Dog, Flipping in Central Park

An elderly bicyclist died Monday morning after colliding with a dog running…
Mystery death at Russian plague lab triggers sweeping precautions as US watches closely

Mystery Death at Russian Plague Lab Prompts Precautions, US Watches

Rubio says US monitoring Russian plague scare Secretary of State Marco Rubio,…
Dramatic footage shows alleged narco boat erupt in fireball during US military strike

Footage Shows Alleged Narco Boat Explode in US Military Strike

The U.S. military said Sunday that it carried out another lethal strike…
US Marine arrested in Japan over suspected killing of woman as Tokyo lodges 'strong protest'

US Marine Arrested in Japan Over Suspected Woman’s Killing as Tokyo Protests

A US Marine stationed in Japan has been arrested on suspicion of…
Florida student killed in rollover school bus crash

Florida Student Killed in Rollover School Bus Crash

Two people, including a high school student, were killed and several others…
Supreme Court won't hear case of students banned from wearing 'Let's Go Brandon' shirts

Supreme Court Declines Students’ ‘Let’s Go Brandon’ Shirt Ban Case

WASHINGTON — The Supreme Court on Monday declined to hear an appeal…