However, players buy Robux with real money, so users need to be careful about how much Robux they spend. Some games ask players to spend Robux, which is in-game money. For example, you can work as a cashier or cook in “Work at a Pizza Place.” Other games let you practice more everyday tasks. Another is “Scuba Diving at Quill Lake,” where you never know what underwater treasures you’ll find next. One is “Natural Disaster Survival,” where players protect themselves during floods and earthquakes. Then, they use their avatar to play games. They can be any form of themselves they want. The avatar can look like the player, but it doesn’t have to! Making an avatar gives players a chance to be creative. Have you ever used an avatar? They’re common in video games, and each Roblox user makes one. What if a user doesn’t find a game they like? They can make their own! Roblox gives each user the tools to make their own games. What kinds of games can you play on Roblox? If you can imagine it, you can play it! After starting an account, players search through a list of over 40 million games. That’s even more than Fortnite! Roblox is still behind the popular Minecraft in its number of users, but the newer gaming platform is catching up. It’s one of the most visited places online, with 56 million players each month. Roblox is an online gaming platform where anyone can make or play games. It might never make a profit but early investors and founders will as well as the game developers and Youtubers and their stock price will be as meaningful as most of the other zero-profit companies that crop up these days.Have you ever gone scuba diving at Quill Lake? Have you made a pizza at Builder Brothers’? Do you solve mysteries in your spare time? If so, you may have done these things on Roblox! It looks like a terrible game to play but I guess the creativity and social aspect of it is appealing to kids like the World of Warcraft MMO style gaming and Minecraft building. Kids are playing these games for hours and watching videos of other people playing on Youtube. These videos look crazy and they have millions of views. This is the kind of thing Apple Arcade could use but ideally much better quality than this: They were kids who started playing on the platform when they were younger and turned into developers, like these: Some developers are making a lot of money building games on the platform, the couple mentioned in that article made $49k in a month. Those costs jumped 69 percent last year to $264.2 million."īecause they have in-game chat and it involves kids, they have around 1,000 admins to check everything is ok for the millions of users. Roblox’s second-biggest expense, behind developer fees, is infrastructure, privacy and safety. That far outpaced the company’s sales growth of 82 percent last year, when it booked $923.9 million in total revenue. "Roblox said in the latest update to its prospectus that it paid developers $328.7 million last year, up almost 200 percent from 2019. Their biggest costs are paying developers to build for the platform and infrastructure: Investors will be hoping that eventually they will grow/maintain their users the same way Minecraft has and lower their costs. The company posted a loss of $253.3 million in 2020, which was significantly worse than its loss of $71 million the year before." " Roblox brings in a lot of revenue, as the company made $923.9 million in 2020 (+82%), with active daily users climbing to an astonishing 32.6 million. Roblox currently makes substantial losses: Snapchat has a business model that looks like it can never be profitable but the founder is a billionaire. It took Amazon around 20 years to turn into the success it is today. It took Twitter 13 years to make a profit ( ).
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They all hope it eventually turns into something profitable like Twitter and Amazon. Look at Snapchat, they have never made a profit in 9 years and valued at $88b.
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The early investors want to see a return so they inflate the values of the stock basing it on revenue and active users and that's how they make money by selling inflated shares to new investors and the company selling shares then uses that income to fund their operation for years. and it's already pretty widely known among the kids as far as I can see. I don't really get that, as I don't see why their revenue would shoot up suddenly because of the public-trading. I think an article I saw earlier today said something about valuation being about 26x or something like that. Roblox has been a craze among the kids for years now.
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Well, the latest craze seems to be on Wall Street.