Roblox competitor Rec Room shutting down

Rec Room, a social gaming platform akin to Roblox, will cease operations on June 1st. The company announced that despite attracting over 150 million users and achieving a $3.5 billion valuation previously, it struggled to establish a profitable business model. Rec Room cited that operational costs consistently exceeded revenue generation. Furthermore, recent shifts in the virtual reality market, coupled with general challenges in the gaming industry, have made the path to profitability increasingly difficult, leading to this decision.