Snap Inc. has acquired select assets from Rec Room Inc. following the Seattle-based company’s announcement that it will shut down its social gaming platform on June 1, 2026, per GeekWire.

A portion of Rec Room’s employees will join Specs Inc., Snap’s wholly-owned hardware subsidiary, to support its Specs eyewear and augmented reality initiatives. Snap cited the Rec Room team’s expertise in building social, multiplayer XR experiences (encompassing virtual reality, augmented reality, and mixed reality) as a key factor in the acquisition. 

The company did not disclose deal terms, pricing, or the number of employees transitioning to Specs Inc.

Platform Wind-Down

Rec Room, founded approximately a decade ago, grew to more than 150 million players and accumulated over 68,000 cumulative years of in-platform play time. The company raised $294 million across six funding rounds and reached a $3.5 billion valuation in 2021.

Despite its scale, the platform never achieved sustainable profitability. “Our costs always ended up overwhelming the revenue we brought in,” the company said in its shutdown announcement, citing a recent shift in the VR market and broader headwinds in gaming as contributing factors.

Rec Room co-founder and CEO Nick Fajt told GeekWire he was “very proud of the team,” thankful to the Rec Room community, and excited for what’s next.

Shutdown Timeline

Beginning immediately, Rec Room has halted new account creation, friend requests, and new Rec Room+ subscriptions. Token purchases and dollar-denominated offers will end on May 1. Creator token earnings will cease after May 18, with a final creator payout processed on June 1. The platform, its rec.net website, and Rec Room Studio’s online services will all go offline on June 1 at noon Pacific time.

The Snap asset acquisition comes ahead of the expected launch of Specs, the company’s next-generation AR glasses, later this year.

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