Rec Room, a social gaming platform that once boasted over 150 million players and creators, is shutting down on June 1, 2026. This marks a significant shift in the gaming landscape, especially as Rec Room was often seen as an alternative to Roblox, appealing to a loyal user base.

Before this announcement, expectations were high for Rec Room. Valued at $3.5 billion at one point, the platform was celebrated for its innovative approach to user-generated content and social interaction. However, behind the scenes, the company struggled with profitability, stating, “we never quite figured out how to make Rec Room a sustainably profitable business.” This admission underscores the challenges faced by many platforms in the competitive gaming market.

The decisive moment came in August 2025 when Rec Room laid off 50% of its staff, a clear indication of the financial difficulties that plagued the company. This drastic measure was a precursor to the eventual shutdown announcement, highlighting the ongoing struggle to maintain a viable business model.

The direct effects of this decision are profound. Many users have expressed their sadness over the impending closure, with one fan stating, “Sad to see it go. Its how I survived most of covid and was a huge way to feel connected to IRL’s I couldn’t see due to it.” This sentiment reflects the emotional connection many users have developed with the platform, particularly during challenging times.

Experts in the gaming industry note that the shutdown of Rec Room may signal a broader trend among social gaming platforms. As competition intensifies, platforms must not only attract users but also find sustainable revenue streams. The challenges faced by Rec Room could serve as a cautionary tale for other companies in the sector.

As the gaming community prepares for the closure, many are left wondering what the future holds for social gaming. With giants like Meta and Epic Games continuing to innovate, the landscape will undoubtedly evolve, but the loss of Rec Room will be felt by its dedicated users.

In summary, the shutdown of Rec Room on June 1, 2026, marks the end of an era for a platform that once thrived on creativity and community. While it reached impressive milestones, the inability to achieve profitability ultimately led to its demise, leaving many to reflect on the importance of sustainable business practices in the gaming industry.

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Meta has confirmed that its virtual reality platform, Horizon Worlds, will no longer be available in VR after June 15, 2026. This announcement marks a significant shift in Meta’s strategy, as the company has invested a staggering $80 billion in the metaverse to date. As part of this transition, Horizon Worlds will also be removed from the Quest Store by March 31, 2026.

Despite the shutdown of Horizon Worlds, Meta remains the largest investor in the VR industry, indicating its commitment to virtual reality technologies. The company is reorienting its efforts towards developing a mobile app for Horizon Worlds, which could potentially broaden its user base beyond VR headsets. “We have a robust roadmap of future VR headsets that will be tailored to different audience segments as the market grows and matures,” a Meta spokesperson stated.

The metaverse has not yet realized its potential as a customer-facing service channel, with many observers noting that the anticipated engagement has not materialized in any meaningful way. This is highlighted by the experiences of companies like Walmart, which has been utilizing VR-based training for its contact center agents since 2021. A 2023 survey revealed that the average annual turnover rate for contact center employees has reached 60%, emphasizing the need for effective training solutions.

Walmart’s VR training program, developed in collaboration with Strivr, has shown promising results. The program reduced total training time for associates from eight hours down to just 15 minutes, while employee satisfaction scores rose by 30% following the implementation of VR training. Additionally, associates scored 10-15% higher on post-training assessments, showcasing the effectiveness of this innovative approach.

As Meta shifts its focus, industry experts are keeping a close eye on the evolving landscape of the metaverse. Marty Resnick, a prominent analyst, predicts that by 2026, 25% of people will spend at least one hour a day in the metaverse for various activities, including work, shopping, education, and entertainment. Furthermore, he estimates that 30% of organizations worldwide will have products and services ready for the metaverse by the same year.

While the future of Horizon Worlds in VR appears bleak, Meta’s hardware line is expected to continue thriving. The company is likely to maintain its presence in the VR market, even as it adapts to changing consumer preferences and technological advancements. Observers remain cautious, noting that it is still too early to determine which investments in the metaverse will prove viable in the long term.

As the metaverse landscape continues to evolve, companies and product managers are encouraged to explore and prepare for its potential. “It is still too early to know which investments will be viable in the long term, but product managers should take the time to learn, explore and prepare for a metaverse in order to position themselves competitively,” Resnick advised.

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