How Can Roblox Change Future Of Gaming?

Roblox, the most anticipated IPO of 2021, was listed on the public stock exchange via direct listing. Roblox’s initial shares traded at $64.50, closing the day at more than $69.

Roblox stands out as a truly unique entity. Roblox is a unique gaming platform. Unlike EA (EA) and Activision Blizzard, which invest millions in developing and publishing games, Roblox relies upon an army of users to create titles that keep gamers engaged for hours. It’s attracting a lot of attention.

According to the S1, Roblox has 31.1 million daily active users as of September 2020. This is an increase of 17.6 million DAUs for all of 2019, and 12 million DAUs for 2018. 7 million of these users are creators. Roblox is growing these numbers with its incubator programs and developer accelerator program, which could help shape the future gaming industry.

Roger Lee, the general partner at Battery Ventures, stated that the business’s power is its ability to provide an on-ramp for a whole new generation of creators. “They have created a platform that allows [gamers] create worlds, games, and experiences that they otherwise wouldn’t be able to.”

David Baszucki is the founder and CEO of Roblox. He presented at the Roblox Developer Conference in Burlingame on August 10, 2019. (Photo by Ian Tuttle/Getty Images Roblox).
Roblox has a few major challenges. It must keep its users, most of them under 13, happy for many years by rewarding creators for their continued development for the platform. This will encourage them to stay on the platform and not leave to create games using engines like Epic or Unity. If it wants to continue making money, it must appeal to an older user.

Roblox’s effort to attract older users

Roblox wants to retain users by reaching a group it has historically struggled to reach: middle-school graduates.

The company stated in its S1 filing that “the majority of our users” is under 13 years old. This demographic might be less brand-friendly and more likely to follow viral trends than others…We may also not be able to reach other demographics in a meaningful way to compensate for the loss in DAUs.

Matthew Kanterman, a Bloomberg Intelligence analyst, said Wednesday on Yahoo Finance Live that Roblox’s loss of gamers could pose a risk to the company.

Kanterman stated that they have not been able to target the older generation and keep gamers happy over time. “Quite simply, there are more options for gamers as they age. You can play more mature games as you age, such as Grand Theft Auto’s hardcore racing games and shooter games not suitable for younger gamers.

Roblox’s older users are more popular than the kids and have deeper pockets. A 12-year-old girl’s parents might stop giving her money for gaming. However, a 26-year old with a job may be more willing to spend money to escape the reality of the world.

The Roblox online gaming platform is displayed on a tablet in Paris, as seen in this picture taken on February 1, 2019.
The company stated that this demographic is more likely to spend content and that their ability to increase penetration and user contributions from them will impact our ability to grow revenue.

Roblox is not your typical game company

Roblox does not have a signature game. Roblox doesn’t have a Mario or Lara Croft game but instead offers an infinite array of gaming options.

This is how it works: First, you create an avatar and then you drop it into the games created by other players. These games can include shooters and racing titles. You can also explore historical events, such as the sinking of the Titanic.

The platform’s content creators make money from the sales of their creations. Robux is a digital currency that can be used to purchase in-game items and character outfits. It is equal to $0.0035. Developers receive a 70% cut from Robux players spend on their games.

Roblox claims that 1,050 developers have earned less than $10,000, while 250 others have earned more than $100,000 through September 2020.

Lee explained that Roblox can offer older gamers more incentives to play. Roblox can retain its best developers by doing this. These developers create better experiences for their users, and not just use their skills on other game development platforms or engines like Unity or Epic Game Engine.

Roblox will also be publicly traded, allowing it to invest in its developer tools and allow creators to create games that appeal to all ages.

Roblox’s young audience is not necessarily bad, since it’s grooming a whole generation of gamers.

“To think that we have a whole family of young people living and breathing this kind of stuff, the things they are going to create within 20 years is amazing,” Mat Piscatella (executive director of games at NPD Group), to Yahoo Finance.

However, the company must move beyond its comfort zone if it wants to grow. The platform already does that to a certain extent, with unique experiences such as a series concert by Lil Nas X.

The creation of more worlds and experiences will ensure that younger gamers are still passionate about the platform. It may also spark the curiosity of older gamers. The company is still in its early stages, but it will continue to expand its reach. It may be able to appeal to both its older followers and those of a younger generation, which could make me a part of the future.

Carl Byrd

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