Overview
- The company, which announced the shutdown Monday, set a wind-down that blocks new accounts and friend requests now, ends token sales May 1, stops creator earnings May 18, and closes the platform with final payouts at noon Pacific on June 1.
- Snap confirmed late Monday it acquired select Rec Room assets and will bring some employees into Specs Inc., its AR and hardware subsidiary.
- Executives cited costs that exceeded revenue over time, including thin UGC economics where Rec Room kept about 30 cents per dollar after platform and creator cuts and AI features with per-user costs that outpaced subscription income.
- Creators can export room and project data for use in tools like Unity, and players can download profile data and in-game photos, with RR+ memberships extended to the shutdown date and refunds issued for unused multi-month terms.
- The platform reached more than 150 million players and a $3.5 billion valuation in 2021 after raising about $294 million, then cut 16% of staff in March 2025 and roughly half the remaining workforce in August as VR market headwinds grew.