What Happened
Rec Room, a Roblox-like social gaming platform that lets users create games and experiences for others to play, is shutting down on June 1st.
Why It Matters
Despite reaching more than 150 million players and creators and, at one point, being valued at $3.5 billion, the company says in a blog post that "we never quite figured out how to make Rec Room a sustainably profitable business" and that "our costs always ended up overwhelming the revenue we brought in." The company also notes that "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 t … Read the full story at The Verge.
Background Context
Rec Room, a Roblox-like social gaming platform that lets users create games and experiences for others to play, is shutting down on June 1st. Despite reaching more than 150 million players and creators and, at one point, being valued at $3.5 billion, the company says in a blog post that "we never quite figured out how to make Rec Room a sustainably profitable business" and that "our costs always ended up overwhelming the revenue we brought in." The company also notes that "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 t … Read the full story at The Verge.
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Source: The Verge – Original Link
Source: The Verge
