Social gaming platform Rec Room shutting down

Rec Room, a popular social gaming platform once valued at $3.5 billion, will cease operations on June 1. Despite attracting over 150 million players, the company struggled with profitability due to escalating costs and insufficient revenue. The platform's closure follows significant layoffs earlier this year, as the company cited challenges in the VR market and broader gaming industry headwinds. New account creations and friend requests are no longer possible, and creators cannot share monetized content as the service prepares to go offline.