Snap acquires assets from Rec Room as social gaming platform announces shutdown - GeekWire

Snap Inc., the parent company of Snapchat, has acquired certain assets from Rec Room, a long-standing social gaming platform, following Rec Room announcement that it will be shutting down. Once valued at a substantial $3.5 billion, Rec Room, which allowed users to create and play games together, is ceasing operations after a decade, highlighting the volatile nature of the social VR and gaming market. Rec Room shutdown is primarily attributed to its persistent struggle with profitability despite a large user base and significant venture capital backing. The highly competitive landscape of social gaming, dominated by giants like Roblox, coupled with the slow mainstream adoption and high development costs of Virtual Reality (VR) experiences, made sustainable monetization challenging. Snap's acquisition, meanwhile, likely represents a strategic move to absorb valuable talent and technology, potentially bolstering its own long-term ambitions in the augmented and Virtual Reality (VR) space, which includes its AR Spectacles and various metaverse-related initiatives.