Rec Room shuts down: $3.5B platform never became profitable

Social VR platform Rec Room went offline on June 1, 2026, after announcing its closure on March 30. It drew over 150 million players in a decade and was valued at $3.5 billion in 2021, but never reached sustainable profitability. Snap acquired select assets and some staff.

• Rec Room servers went dark at noon Pacific on June 1, 2026
• The company raised $294 million at a $3.5 billion valuation in December 2021
• About half the staff, 141 positions, were cut in August 2025
• UGC revenue grew 70% year over year, but Rec Room kept only 30 cents per dollar