Rec Room is shutting down, despite the popular game reaching over 150 million users. Here’s why

School is out for Rec Room: The social gaming platform announced on Monday it is shutting down this June, despite “reaching over 150 million players and creators along the way” since its founding in 2016. “Despite this popularity, we never quite figured out how to make Rec Room a sustainably profitable business,” the company said in a statement. “Our costs always ended up overwhelming the revenue we brought in. “We spent a long time trying to find a way to make the numbers work.” “But 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,” it explained. Once valued at $3.5 billion, Rec Room is a popular, cross-platform social video game that allows players to hang out, create, and share user-generated games and virtual goods. “Over the last decade, players made over half a billion friends on the platform,