Rec Room, the popular social VR game built on user-generated content, will shut down permanently on June 1, 2026. The decision follows a significant layoff of roughly 50% of its development team earlier this year and a scaling back of the game's scope. Despite reaching over 150 million players and creators and players spending a cumulative 68 thousand years in the game, the studio consistently failed to achieve sustainable profitability. Rec Room attributes its closure to a challenging recent shift in the VR market and broader gaming headwinds that made profitability increasingly difficult.

Players will lose access to the game and servers on the shutdown date, though they can download their personal data like photos and player cards. Creators will receive room data files to recreate their UGC elsewhere in a standalone Unity app. The studio expressed pride in the community's creativity but acknowledged the end of an era for the platform.