Rec Room, a Roblox-like social gaming platform that lets users create games and experiences for others to play, is shutting down on June 1st.
Rec Room, a Roblox-like social gaming platform that lets users create games and experiences for others to play, is shutting down on June 1st. Despite reaching more than 150 million players and creators and, at one point, being valued at $3.
5 billion, the company says in a blog post that “we never quite figured out how to make Rec Room a sustainably profitable business” and that “our costs always ended up overwhelming the revenue we brought in.” The company also notes that “with the recent shift in the VR market, along with broader headwinds in gaming, the path to profitability has gotten tough enough that we’ve made the difficult decision to shut things down.” Rec Room laid off half of its staff in August, and a few days after the cuts were announced, Rec Room CEO and co-founder Nick Fajt said that that doing the layoffs when it did “gave us the ability to take care of people, while still setting up Rec Room for years, not months of funding.” Rec Room isn’t the only social gaming platform that’s struggled as of late. Starting in June, Meta’s Horizon Worlds won’t get new VR experiences as the company shifts the focus of the platform to mobile. Last week, Epic Games laid off more than 1,000 employees due to a “downturn in Fortnite engagement” that meant the company was “spending significantly more than we’re making,” according to CEO Tim Sweeney.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Colorado Coach Previews Buffaloes 'Unique' Tight End RoomThe Colorado Buffaloes now have different leadership in the tight end room with coach Josh Niblett and with his experience this group could develop as one of the stronger units on the roster.
Read more »
Commanders Locker Room Was Surprised By Kliff Kingsbury MoveWhat was the reaction like from Commanders players after moving on from Kliff Kingsbury as OC?
Read more »
Pros and Cons of an Inexperienced Quarterback Room for the DolphinsWhen the Miami Dolphins signed Malik Willis, they understood that they were taking a gamble on a player with limited reps. Willis, in his four-year career, has
Read more »
Roblox now uses AI moderation to shut down harmful content before it reaches youTech Product Reviews, How To, Best Ofs, deals and Advice
Read more »
Florida hospital drops lawsuit after patient who refused to vacate room finally leavesA Florida hospital has dropped a lawsuit that aimed to force a discharged patient to leave her hospital room. A spokesperson for Tallahassee Memorial Hospital said Monday that the patient was no longer at the hospital. The woman was officially discharged Oct.
Read more »
BOXROOM lets you build a cozy game room for your Steam libraryFind the latest technology news and expert tech product reviews. Learn about the latest gadgets and consumer tech products for entertainment, gaming, lifestyle and more.
Read more »