Rec Room to Permanently Close This June Following Financial Struggles

A Decade of Virtual Socializing Ends

Social VR giant Rec Room will permanently shut its servers on June 1, 2026, ending a ten year journey that reached 150 million users. The announcement comes after the company struggled to reach sustainable profitability despite its massive global popularity. Effective immediately, new account creations have been disabled as the platform begins its final wind down phase.

Financial Headwinds and Market Shifts

Management cited high operating costs and significant shifts in the virtual reality market as primary drivers for the decision. While millions of players engaged with the platform monthly, the revenue generated could not keep pace with the expenses of maintaining such a vast ecosystem. This move follows two major rounds of layoffs in 2025 that saw the staff count drop significantly.

The Shutdown Roadmap

The shutdown process includes several immediate changes to the user experience. Players can no longer sign up for the Rec Room Plus membership or purchase tokens. To thank the community, first party store content is now discounted by 80 percent and many premium features are available for free until the final closure date.

Tools for Creators and Players

Creators have until May 18 to earn tokens from their virtual rooms and inventions. While full room downloads are not possible due to server requirements, a special tool for the Steam PC version will allow users to export data for use in other engines like Unity. All servers and the website will go dark at noon Pacific time on June 1.

Technology Transfer and Legacy

Reports indicate that while the app is ending, its technology may live on through other means. Industry insiders suggest that Snap Inc has acquired various assets and hired former staff members to bolster its own augmented reality projects. This signals a shift where the legacy of this pioneer might influence the next generation of spatial computing at a different firm.