Maintaining a high level of 120,000 simultaneous connections on weekends, the economy of metaverse VRChat

What is VRChat — and Why Did It "Survive"?

Platform Overview

VRChat is a social VR platform founded in 2014 in San Francisco, USA, by Graham Gaylor (CEO) and Jesse Joudrey (CTO). Users don avatar 3D characters to explore countless virtual worlds created by other users, converse, attend events, and engage in creative activities.

VRChat's Technical Edge — Why Other Platforms Can't Keep Up

VRChat's defining characteristic is that approximately 99% of its content is user-generated (UGC). VRChat itself operates under the philosophy of "provide the tools, get out of the way, and let the community build." This stands in stark contrast to the failure of Meta Horizon Worlds, which attempted to control content from the top down.

1. Unity SDK & Udon/Soba Scripting

Content creation in VRChat is done through a Unity-based SDK. In-world interactions are written in the visual programming language "Udon" (node graph style) or the C#-like "UdonSharp." In November 2024, "Soba" was announced as Udon's successor — a next-generation system that compiles full C# scripting to Microsoft's Common Intermediate Language (CIL) — with a planned release sometime in 2026.

2. Full-Body Tracking Support

VRChat supports SteamVR-compatible HTC Vive Trackers, IMU-based SlimeVR, and even facial tracking. This depth of technical capability — enabling dance performances and expressive communication — is an area where no other platform has managed to follow.

3. Avatar Dynamics

The PhysBones system applies realistic physics simulation to hair and clothing, while VRC Contacts enables interactions between avatars. Combined with VRC Constraints and complex animation controllers, avatar customization is effectively limitless.

4. Cross-Platform Expansion

On October 24, 2025, VRChat officially launched on iOS and Android, greatly opening the door to users who do not own VR headsets. It runs on iPhone 12 Pro and later devices equipped with 6 GB or more of RAM.

5. Steam Audio (Spatial Audio)

A spatial audio system made available as an open beta in early 2026 has made the sense of sound positioning within virtual spaces feel even more realistic.

History of Capital Raising — How Silicon Valley VCs Have Evaluated Companies

Full Round Overview

Since its founding, VRChat has raised a total of approximately $95.2 million across 10 rounds of funding.

Post-money valuation at Series D was approximately $343.4 million. No major new funding rounds have taken place in the roughly five years since June 2021.

Key Investors and Their Perspectives

Anthos Capital (Series D lead — $80 million)

A growth equity firm based in Los Angeles. Managing Director Brian Ames said at the time of the investment announcement: "We are proud to partner with VRChat as they continue to innovate the social experience. As the VR market grows, VRChat is well-positioned for significant expansion and growth as the leading platform for virtual worlds."

GFR Fund (participated in Series A through D)

A San Francisco-based VC that traces its origins to "GREE VR Capital," founded by Japanese mobile gaming company GREE. Its initial fund was sized at $18.3 million and focused exclusively on VR/AR/MR companies. GFR Fund participated consistently from VRChat's Series A onward and has supported portfolio companies in expanding into Asian markets. GFR Fund's Japan connection proved prescient — now that Japan has become VRChat's fastest-growing market, that strategic investment decision has been vindicated.

Makers Fund (participated in Series C and D)

A San Francisco-based VC specializing in games and interactive entertainment, founded in 2016 with a portfolio of over 90 companies. In 2022, it closed its third fund at $500 million. The firm invests in content studios, technology solutions, and consumer platforms.

HTC (participated from Seed through Series C)

HTC made strategic investments as the manufacturer of the "Vive" VR headset. VRChat was a critical content driver for the Vive, and the investment was made with the expectation of synergies between hardware and software.

VC Verdict — "The Most Capital-Efficient Metaverse Investment"

VRChat's capital efficiency stands out. The comparison below makes it immediately clear.

One Silicon Valley VC analyst commented: "VRChat has achieved what Meta could not, with just 0.1% of Meta's investment. It's proof that community-driven platform design was the right approach."

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Trends in Concurrent Users — Why 120,000 Is Considered "High"

Overview of CCU Data

VRChat's CCU is an aggregate across multiple platforms, with Steam data accounting for only about 50% of the total. The remaining ~50% comes from Meta Quest standalone, Pico, and mobile (Android/iOS) access.

All-Time Peak Record Trends

Steam-Only Data (Steam Charts)

Steam-only monthly average players grew from approximately 36,000 in March 2025 to approximately 47,000 in March 2026, representing roughly 30% year-over-year growth. Across all platforms combined, weekend peak CCU of 120,000–125,000 has become established as the "normal baseline" as of early 2026.

Why 120,000 Matters

Placing this figure in context reveals its significance.

• Meta Horizon Worlds MAU (Monthly Active Users) peaked at around 300,000 and has since declined to approximately 200,000. The fact that VRChat's peak concurrent users exceed half of Horizon Worlds' MAU speaks to the depth of engagement among VRChat users.
• The typical DAU/MAU ratio for social VR platforms is cited at 10–15%, yet VRChat significantly surpasses this figure.
• In surveys targeting social VR users, 82% selected VRChat as their "most preferred social VR platform."

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Japan — The Epicenter of the VRChat Economy

The Reality of Explosive Growth

Japan's presence in VRChat's growth story is worth special mention.

Japan has become #1 in the world for desktop traffic to the VRChat official site, overtaking the United States. It also ranks #2 in mobile downloads with a 25% share. This is not merely a passing boom — it is structural growth accompanied by long-term user retention.

The "Sutanmi Boom" — A Door Opened by VTubers

The starting point of this explosive growth was the "Sutanmi Boom," which began in June 2024. Popular streamer Sutanmi Japan began streaming on VRChat, triggering an accelerating crossover with the VTuber community. A massive audience base within the sphere of influence of VTuber agencies such as Hololive and Nijisanji flowed into VRChat.

The October 2024 launch of the Meta Quest 3S provided further tailwind. The spread of affordable standalone VR headsets made VRChat accessible to users without a PC.

Japanese Companies Entering VRChat

• McDonald's Japan: In June 2025, opened an official world inside VRChat. It attracted attention as a pioneering example of experiential brand marketing.
• NagisaConnect: On March 1, 2026, launched VRChat's first full-scale in-world advertising partnership. Rotating poster ads were deployed inside the VRChat world "Himari no Ryokan" (with over 300,000 monthly visitors). The "direct link" feature — allowing users to navigate directly from in-world ads to external web pages — was a first for any Japanese VRChat world.

Japan's Creator Ecosystem

Japan's VRChat creator community is so large that it is said "the number of Japanese creators exceeds the combined number of creators from all other countries." A deep cultural affinity for anime aesthetics, avatar self-expression, and customization culture has elevated Japan to the position of the world's largest VRChat community by spending.

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Avatar Economy—Virtual Consumption Worth Tens of Billions of Yen

VRChat Official "Creator Economy"

VRChat launched a preview of its Creator Economy in 2023 and expanded it incrementally through 2024–2025. In May 2025, it launched the Avatar Marketplace.

In the Avatar Marketplace, users can purchase avatars directly using VRChat Credits within the app. Purchased avatars are automatically added to the account, with no Unity upload required — a design that lowers the barrier for VR newcomers and casual users.

Booth.pm — Japan's Avatar Distribution Platform

Despite the existence of VRChat's official marketplace, Booth.pm (operated by pixiv Inc.) remains the primary battleground for Japanese creators. The reason is clear — the overwhelming difference in fee rates.

Typical avatar price ranges on Booth.pm:

• Avatar bases: ¥3,000–¥8,000 (~$20–$55)
• Accessories & clothing: ¥500–¥3,000 (~$3–$20)
• Some top creators have achieved cumulative sales exceeding ¥20,000,000 (~$130,000)

User Spending Behavior — "40% Spend ¥50,000+ Per Year"

A metaverse economy survey targeting social VR users (2025, n=901) highlights the depth of spending behavior among VRChat users.

The Custom Avatar Commission Market

In addition to ready-made sales through official marketplaces and Booth.pm, individual commissions (made-to-order work) also form a significant market.

Creator Income Ranges

Monthly income for VRChat creators varies widely depending on activity level.

In-Game Service Economy — The Massive Market of Virtual Events

Virtual Market (Vket) — The World's Largest Metaverse Convention

Virtual Market (Vket), held on VRChat, is the world's largest event taking place in metaverse space.

Vket is not merely a virtual exhibition. It is a marketplace where a wide variety of digital goods are traded — including avatars, world assets, music, and tools — and it stands at the cutting edge of commerce in metaverse space.

Other Virtual Events

A wide variety of events are held regularly within VRChat.

• DJ Events: Events drawing 80+ participants are held on a regular basis. A unique nightlife culture that blends VR-exclusive spatial production with avatar dancing.
• Spookality (Halloween Event): An annual large-scale themed event.
• Furality Convention: A multi-day VR furry convention attended by thousands.
• Pride Month Charity Event: A social event hosted by diverse communities.
• VREventHub.com: Serves as an event directory, listing dozens of events daily.
• Sanrio Virtual Festival: Held in February 2026, it was the direct catalyst for the all-time CCU record of approximately 157,000 concurrent users.

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VRChat Plus——Subscription Revenue Model

Service Overview

Revenue Scale Estimates

While VRChat does not disclose its subscriber count, if we assume that 5% of its 8.2 million registered users (410,000 users) subscribe at an average of $8/month, this would project to approximately $39 million per year (approx. ¥5.85 billion) in recurring revenue. However, the actual conversion rate is likely lower than this, and third-party estimates place VRChat's annual revenue at approximately $28–34 million (approx. ¥4.2–5.1 billion).

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Competitive Environment — The Meaning of "The Last One Standing"

The Collapse of Rec Room — Lessons for VCs

The story of Rec Room is one of the most striking lessons from the metaverse investment bubble.

Rec Room operated under a revenue structure where UGC sales left only 30 cents on the dollar (with the remaining 70 cents going to platform fees and creator payouts), and it was unable to bridge the gap with the 70 cents retained from first-party content sales. Despite backing from tier-one VCs like Sequoia Capital and Index Ventures, it could not overcome the unit economics barrier.

Lesson for VCs: "User growth alone does not make a sustainable business." Rec Room's collapse from a $3.5 billion valuation to zero will be remembered as a defining case study of the metaverse investment bubble.

Meta Horizon Worlds — A $73 Billion Retreat

Meta Horizon Worlds peaked at only around 300,000 MAU, and its "legless" avatars became a laughingstock. When Meta announced the 30% cut to the Reality Labs budget, Meta's stock rose 4%. The market welcomed the retreat from the metaverse.

Roblox — The Only Public Player

Roblox occupies a different segment than VRChat. It targets a younger demographic and is built mobile-first with a 2D design. Both rely on UGC and creator economies, but VRChat's content is far more technically sophisticated.

Resonite — The Most Technically Ambitious Challenger

Released on Steam in October 2023 as the successor to NeosVR, Resonite is led by former NeosVR developer Tomas Mariancik. Its greatest strengths are real-time in-app content creation and the visual programming language "Protoflux," built around a design philosophy where all content is remixable and editable in real time. However, its user base is orders of magnitude smaller than VRChat's, keeping it a niche platform. Note that NeosVR's cloud services ended on August 20, 2025, and it was also delisted from Steam.

Competitive Comparison Summary

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How Silicon Valley VCs Are Reacting — From the Metaverse to AI, But…

The Great Pivot: From Metaverse to AI

In Silicon Valley between 2025 and 2026, there is no doubt that AI has replaced the metaverse as the dominant investment thesis. Meta is planning to invest $115–135 billion in AI infrastructure in 2026, with $600 billion in AI investments planned within the United States by 2028. This dwarfs any remaining investment in Reality Labs.

Is the Metaverse "Dead"?

According to research by Visible.vc, as of 2026, 15 notable VCs are still investing in the VR space, including Andreessen Horowitz, Boost VC, and HTC Vive X. However, many have expanded their mandates toward AI-adjacent XR applications.

JPMorgan still positions the metaverse as a "trillion-dollar annual revenue opportunity," pointing to the fact that $54 billion in virtual goods are already being traded annually. Gartner predicted that 25% of the world's population would spend more than one hour per day in the metaverse by 2026, though this forecast must be acknowledged as overly optimistic.

The "Right Model" That VRChat Demonstrates

The current consensus in Silicon Valley's VC community can be summarized as follows:

1. Top-down, enterprise-led metaverse has failed. What Meta proved with its $73 billion investment is that an approach where companies try to control content does not work.

2. Community-driven, UGC models won. VRChat, with its philosophy of "provide the tools and let the community build," achieved greater engagement with less than 0.1% of Meta's investment.

3. However, monetization remains a challenge. VRChat laid off 30% of its employees (approximately 40–50 people) in June 2024 and is pursuing a five-year path to profitability. This is a structural reform from the over-hiring during the VR boom of 2021–2022. A co-founder candidly acknowledged that they "failed to create an environment where everyone could succeed."

4. Metaverse growth comes from gaming, enterprise training, and the creator economy. Practical use cases — not a "Ready Player One"-style vision — are driving the market. Data also shows that 30% of companies are integrating virtual environments for training, design, and productivity improvement.

Coverage Tone by Outlet

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Metaverse Market Size Forecast — Analysts' Projections

Forecasts from Major Research Institutions

Gaming Metaverse Market (Mordor Intelligence)

• 2025: $25.67B (approx. ¥3.85T)
• 2031: $176.15B (approx. ¥26.42T)
• CAGR: 37.85%

Spatial Computing Market (Treeview)

• 2025: $20.43B (approx. ¥3.06T)
• 2030: $85.56B (approx. ¥12.83T)
• CAGR: 33.16%

VRChat's estimated annual revenue on its own (approximately $28M–$34M) is negligible compared to market forecasts in the hundreds of billions of dollars. However, as it continues to establish itself as the "winner" in social VR, it stands a strong chance of becoming one of the platforms that benefits most from the growth of this enormous market.

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Future Outlook——What Will Happen and When

Notable Events & Milestones for 2026

Metrics VCs Are Watching

1. CCU sustainability: Whether the 120K weekend peak is a "floor" or a "ceiling." Determining whether the influx following Rec Room's closure is temporary or sustained.

2. Creator Economy GMV: The key is how much of Booth.pm's transaction volume the Avatar Marketplace can capture within VRChat.

3. Mobile user retention: Whether the user expansion driven by the October 2025 mobile launch is coming at the cost of VR experience depth.

4. Japan market monetization: How much direct revenue VRChat can capture from Japanese users, who represent the highest spending globally.

5. Progress toward profitability: Whether the financial improvement following the June 2024 layoffs is tracking according to plan.

Long-Term Scenarios

Optimistic scenario: The closure of Rec Room and VR pullback of Horizon Worlds creates a de facto monopoly in social VR platforms. Creator Economy GMV surges, with profitability achieved in 2027–2028. As the next generation of Apple Vision Pro and Meta Quest devices gains adoption, VRChat's TAM (Total Addressable Market) expands dramatically.

Neutral scenario: Growth is maintained at current rates, with break-even reached in year five of the profitability plan (2029). The Creator Economy grows steadily, but competition from Booth.pm limits growth of the official marketplace.

Pessimistic scenario: Investor interest in VR/metaverse cools further amid the AI investment boom, making new fundraising difficult. Competitor Resonite succeeds in technical differentiation, leading to an exodus of core users.

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Conclusion — The Platform That "Built the Largest Community with the Least Capital"

The metaverse landscape of spring 2026 is full of irony. As tech giants that poured tens of billions of dollars into the space retreat, a platform built on just $95 million in funding continues to draw over 120,000 users every weekend.

The story of VRChat reveals an old yet ever-relevant truth in the tech industry — the value of a platform is determined not by the capital invested in it, but by the depth of culture that its community spontaneously creates.

In early 2026, co-founders Graham Gaylor and Jesse Joudery, responding to the closure of Rec Room and Meta's withdrawal from Horizon Worlds VR, declared:

"VRChat is not going anywhere."

The weight of these words is made all the more striking by the contrast between the figure of $73 billion in losses and the figure of 120,000 peak concurrent users on weekends.

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Closing Words — The Platform That "Built the Largest Community with the Least Capital"

The metaverse landscape of spring 2026 is rife with irony. As tech giants that poured in tens of billions of dollars retreat, a platform built on just $95 million in funding continues to draw over 120,000 users every weekend.

The story of VRChat illustrates an old yet ever-relevant truth in the technology industry — the value of a platform is determined not by the capital invested in it, but by the depth of culture that its community organically creates.

In early 2026, co-founders Graham Gaylor and Jesse Joudery responded to the closure of Rec Room and Meta's withdrawal from Horizon Worlds VR with this declaration:

"VRChat is not going anywhere."

The weight of those words is made all the more striking by the contrast between two numbers: a loss of $73 billion, and a weekend peak CCU of 120,000.

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Main Sources

• Road to VR — VRChat $80M Series D Funding
• BusinessWire — VRChat Partners With Anthos Capital
• Road to VR — VRChat New Year's Eve Record 2025/2026
• Road to VR — VRChat All-Time High (Japanese Concert)
• VRDB Blog — VRChat: The Metaverse That's Actually Growing
• Mogura VR — Japan Ranks First in VRChat Website Visitors
• vchavcha.com — VRChat Metaverse Demographics Report 2026
• vchavcha.com — VRChat Sutanmi Boom
• Tubefilter — VRChat Avatar Marketplace
• VRChat Creation — Creator Economy
• Steam Charts — VRChat
• TechCrunch — Rec Room Shutting Down
• TechCrunch — Meta Metaverse Leaves VR
• Road to VR — VRChat Founders Statement
• Road to VR — VRChat 30% Layoffs
• Tracxn — VRChat Funding Rounds & Investors
• Mordor Intelligence — Metaverse Market
• Grand View Research — Metaverse Market Report
• Virtual Market Press Release — 2025 Summer Record
• IT Business Today — VRChat and NagisaConnect
• Road to VR — VRChat Mobile Release
• GamesBeat — GFR Fund
• TechCrunch — Makers Fund $500M Third Fund