Roblox shows why it’s the most well-liked game and IPO
Forget Fortnite or Minecraft for that matter. Parents everywhere know there’s a replacement game in town that’s rapidly gobbling up all of their kids’ free time and attention: Roblox.
The company behind this popular culture phenomenon filed Thursday with the US Securities and Exchange Commission to travel public and also disclosed a much bigger aspiration that’s the last word dream of gamers and science-fiction aficionados: enabling a life-like virtual playground universe for billions of individuals. Given the extent of Roblox Corp’s progress this year, on top of its widening lead over competitors, I wouldn’t bet against it.
The San Mateo, California-based company’s metrics are impressive. Its prospectus shows Roblox’s bookings, the gaming industry’s primary measure of sales soared by 171% within the first nine months of 2020 to $1.24 billion from $458 million the prior year. Daily users grew by about 80% to quite 30 million within the period. and maybe most impressive, each of these gamers the bulk of whom are 12 and younger, spent a mean of 2.6 hours each day on Roblox.
It’s an honest time to be in video gaming. the whole industry has thrived amid the pandemic due to lockdown orders and a scarcity of in-home entertainment options. But these Roblox numbers significantly surpass its peers and can go far toward persuading investors to offer the corporate the $1 billion or more it’s hoping to boost to achieve its ambitions.
From the dawn of interactive entertainment, gamers have salivated over the prospect of living and socializing inside a totally realized world, using life-like customized digital characters. Roblox is aiming at this goal. the corporate says it plans to take a position aggressively to enable higher-fidelity avatars and improve its visual and audio capabilities.
Roblox is building an increasingly unassailable lead within the virtual world market. quite the other gaming company, it’s found out the way to maintain and build a self-sustaining ecosystem of creators and users. because the virtuous feedback circuit between the 2 sides accelerates, wherein an outsized population attracts high-quality content creation and the other way around, it’ll get harder for rivals to catch up. Already, the numbers are staggering: so far, there are nearly 7 million active developers who have made quite 18 million gaming experiences for Roblox, including many virtual items that gamers can use to personalize their characters. No other platform comes close.
Money also talks. Nearly 1 million creators have earned “Robux,” the platform’s virtual currency which will be converted into US dollars, over the past year; 250 of them made $100,000 or more. And there’s scope for bigger payoffs. While the bulk of Roblox’s current users are of the younger set, they’ll be growing up in time, and therefore the company says content spending dramatically improves for users older than 13. Its younger base may be a big asset.
Unlike other competitors that generate large portions of their revenue selling and making their own game content, Roblox’s entire business model depends on enabling its users to make immersive virtual worlds. So far, it’s been a winning strategy. And it’s got tons more runway.