After passing 150 million users, Roblox competitor Rec Room has shut down

Rec Room, a Roblox-like social gaming platform that allows users to create games and experiences for others to play, will close on June 1. Despite having a reach of over 150 million players and creators, and at one point, they were appreciated In the amount of $3.5 billionThe company says In a blog post “That we never figured out how to make the Rec Room a sustainably profitable business” and that “our costs always ended up exceeding the revenues we brought in.”

The company also notes that “with the recent shift in the VR market, coupled with broader headwinds in gaming, the path to profitability has become difficult enough that we have made the difficult decision to shut things down.” The entertainment room has been laid off Half of its staff in AugustA few days after the cuts were announced, Nick Vagt, CEO and co-founder of Rec Room, announced He said that Doing the layoffs when they happened “gave us the ability to take care of people, and still build the Rec Room for years, not months of funding.”