Rec Room, a social gaming platform that allowed users to create games and experiences, was once a promising alternative to giants like Roblox. With more than 150 million players and creators at its peak and a valuation reaching $3.5 billion, expectations were high for the platform. However, the reality of sustaining a profitable business proved elusive.

As of June 1, 2026, Rec Room will officially shut down, a decision that stems from ongoing profitability issues. The company candidly stated, “we never quite figured out how to make Rec Room a sustainably profitable business.” This admission highlights the challenges faced by many platforms in the competitive landscape of online gaming and social interaction.

The shutdown announcement follows a significant reduction in workforce, with Rec Room laying off 50% of its staff in August 2025. This move was indicative of the financial strain the company was under, as it struggled to balance user engagement with revenue generation.

Despite the impending closure, Rec Room maintained a loyal user base, with fans expressing their sadness over the news. One user remarked, “Sad to see it go. Its how I survived most of covid and was a huge way to feel connected to IRL’s I couldn’t see due to it.” This sentiment underscores the emotional connection many users had with the platform, particularly during challenging times.

The decision to shut down Rec Room not only affects its dedicated users but also sends ripples through the broader gaming industry. Competitors like Roblox and platforms developed by Meta and Epic Games may see shifts in user engagement as former Rec Room players seek new virtual spaces.

Experts in the gaming industry suggest that the challenges faced by Rec Room are not unique. Many platforms struggle to monetize user engagement effectively, leading to similar outcomes. The case of Rec Room serves as a cautionary tale for emerging platforms aiming to carve out a niche in the crowded market.

As the gaming landscape continues to evolve, the lessons learned from Rec Room’s journey may inform future developments in social gaming. The need for sustainable business models will remain a critical focus for companies looking to thrive in this dynamic environment.

Details remain unconfirmed regarding any potential successors or new projects from the Rec Room team following the shutdown. The community will undoubtedly be watching closely as the situation unfolds.

The post Rec Room Faces Shutdown After Struggles with Profitability appeared first on DG News Sport.

Meta has announced that its virtual reality platform, Horizon Worlds, will cease to operate in VR by June 15, 2026. This decision comes as part of a broader strategy to reorient its metaverse efforts, which have seen an investment of a staggering $80 billion. The platform will also be removed from the Quest Store by March 31, 2026, indicating a significant shift in Meta’s approach to virtual reality.

Despite this closure, Meta remains the largest investor in the VR industry, signaling its commitment to the technology. The company has stated, “We have a robust roadmap of future VR headsets that will be tailored to different audience segments as the market grows and matures.” This suggests that while Horizon Worlds may be winding down, Meta’s hardware initiatives are set to continue, focusing on new developments that could redefine user interaction in virtual spaces.

Historically, Meta, which rebranded from Facebook to emphasize its commitment to the metaverse, has faced challenges in making its vision a reality. The anticipated customer-facing services within the metaverse have not materialized as expected. As of now, the metaverse as a service channel has not gained traction, leaving many to question the viability of such investments in the long term.

In a related context, Walmart has been leveraging VR technology for training its contact center agents since 2021. The retail giant has reported a staggering 60% average annual turnover rate in its contact centers. However, VR training has proven effective, reducing training time from eight hours to just 15 minutes. Furthermore, employee satisfaction scores at Walmart rose by 30% following the implementation of VR training, and associates scored 10-15% higher on post-training assessments.

As the metaverse landscape evolves, experts predict that by 2026, 25% of people will spend at least one hour a day in the metaverse for various activities, including work, shopping, and entertainment. Additionally, 30% of organizations worldwide are expected to have products and services ready for the metaverse by the same year. Marty Resnick, a prominent analyst, emphasizes the importance of preparation, stating, “It is still too early to know which investments will be viable in the long term, but product managers should take the time to learn, explore and prepare for a metaverse in order to position themselves competitively.”

As Meta pivots away from Horizon Worlds, the future of its metaverse initiatives remains uncertain. While the company is shifting focus towards a mobile app version of Horizon Worlds, the overall direction of its metaverse strategy is yet to be fully clarified. Observers are keenly watching how Meta will navigate this transition and what new opportunities may arise in the evolving landscape of virtual reality.

Details remain unconfirmed regarding the specific features and functionalities of the upcoming mobile app, but the shift indicates a broader trend of adapting to user preferences and technological advancements. As the metaverse continues to develop, the implications of Meta’s decisions will likely resonate throughout the industry, influencing how companies approach virtual reality and immersive experiences.

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