Rec Room Shuts Down Following Early 2026 Layoffs Despite “Reaching Over 150 Million Players”

Rec Room, a social VR game that largely revolved around user-generated content and social mini-games for fun, has been added to the long line of games that will meet their doom in 2026. According to the game’s developer, Rec Room will shut down on June 1, 2026, due to issues with sustainability and profitability. This is after the studio behind the game announced earlier this year that it was laying off roughly 50% of its development team and scaling back the game’s scope due to similar issues. As the game studio explains in the announcements, it “never quite figured out how to make Rec Room a sustainably profitable business,” and its “costs always ended up overwhelming the revenue” it earned.

This failure to find profitability is in spite of some rather impressive claims regarding player counts for Rec Room. According to the game studio, Rec Room reached over 150 million players and creators, and players spent a cumulative 68 thousand years in Rec Room. The studio blames a “recent shift in the VR market, along with broader headwinds in gaming,” which have made profitability as a game studio all the more difficult. The game will officially shut down on June 1, 2026, along with the official website, servers, and player accounts, although players will be able to play the game until then, and all first-party content will be 80% off, while there will no longer be a requirement for a RecRoomPlus account for certain cosmetic features.