Overview
- Rec Room shut its game servers at noon Pacific on Monday, June 1, making the platform unplayable and prompting players to hold final in‑game gatherings and post online tributes.
- The company said it closed because costs outpaced revenue and it could not find a sustainable path to profit from a model built on user‑generated content.
- A core financial problem was that Rec Room paid creators and app‑store fees that left roughly $0.30 of every dollar from player‑made items versus about $0.70 on first‑party content, squeezing margins.
- Before the servers went dark a small internal team produced export tools and standard file exports so creators could preserve rooms, avatars, and assets for use elsewhere.
- Snap bought select Rec Room assets and hired some staff while players and creators organize migrations and preservation projects, with VRChat and fan‑run servers positioned as leading alternatives.