The creators of Rec Room, the virtual reality online game announced this week that it will shut down on June 1, saying it “never quite figured out how to make Rec Room a sustainably profitable business.” Despite serving more than 150 million players over the past decade, the company admitted that its costs consistently outweighed the revenue it generated. At noon Pacific time on that day, the servers will go dark, marking the end of one of the most ambitious social gaming experiments of the VR era.
For many players, this came as a shock. Rec Room was one of the early pioneers of cross-platform social gaming, letting users create rooms, games, and virtual items that worked across phones, consoles, PCs, and VR headsets.
Founded in 2016 by Nick Fajt, who was also CEO of Against Gravity, the Seattle startup rode the wave of interest in virtual hangout spaces long before the term “metaverse” became a buzzword. During the pandemic, usage surged as people flocked to digital spaces to socialise.
Investors noticed. The company raised $294 million from firms including Sequoia Capital, Index Ventures, and Madrona Venture Group, eventually reaching a $3.5 billion valuation in late 2021. At its peak, Rec Room reported over 100 million lifetime users.
Louis Eriakha
In the announcement, the company said, "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."
New accounts, subscriptions, and monetised content are already disabled. Token purchases end May 1, creator earnings stop May 18, and final payouts will be processed on June 1. Players can download photos and account data, while creators can export room data to help recreate their projects elsewhere.
Rec Room’s shutdown is a reminder that popularity doesn’t always translate into sustainability.
Here are alternative games to try if you liked Rec Room:
1. VRChat
VRChat is arguably the closest spiritual successor, especially if you loved the social and creative aspects of Rec Room. It is a massive social platform where almost everything, from the avatars to the sprawling worlds, is built by the community.
Similar to Rec Room, it’s built on a foundation of user-generated content (UGC). You’ll find thousands of community-made mini-games such as horror escapes, racing, and shooters, alongside dedicated social hangouts. It also supports cross-play between VR and Desktop mode, so you don't necessarily need a headset to stay connected with friends.
2. Roblox
While it has a different art style, Roblox is the titan of the creative genre and offers a high level of stability for players right now. It is a global platform that hosts millions of games created by its users, ranging from complex RPGs to simple social hangout spots.
It mirrors the Rec Room philosophy of being able to play almost anything. If you enjoyed specific rooms like Paintball or Quest, you’ll find thousands of similar experiences here. It’s also highly accessible, running on phones, tablets, consoles, and VR.
3. Alife Virtual
This is a newer, rising star in 2026 that has been gaining traction specifically among the creator crowd looking for a more modern platform. It is a virtual world focused heavily on land ownership and professional-grade building tools that don't require external software for basic creation.
It captures that sandbox feeling where you can own a space and invite friends over. It’s a great alternative for those who used Rec Room primarily for world-building and social events, as it offers more robust monetisation and ownership features for creators who want their work to last.
