Rec Room's 150-Million-User Shutdown: When Scale Cannot Fix Profitability

Rec Room's closure despite massive scale reveals a fundamental crisis in social gaming and VR platforms: user volume alone cannot guarantee sustainable profitability. The shutdown mirrors broader struggles across the industry—Meta is deprioritizing VR experiences, and Epic Games is cutting costs due to falling Fortnite engagement—suggesting that the entire sector faces structural challenges in monetization that demand new business models.