As a parent, its astonishing how Roblox has a plaform which is so extremely successful among children, yet loses money. My own child as well as many other children all was robux for Christmas.
Traditional f2p games will also have most of the players not spending anything. However, the BIG spenders have high paying jobs (or credit cards) and spend thousands a week on the game. I'm guessing there aren't maybe 8 year olds doing the same.
My 10 year old autistic nephew can spend robux like a tiktok rapper who spends real cash. The business model is exploitative and controversial, even worse the target audiences are kids. If with all these little addicts and these businesses practices you can't swim in positive cashflow I'd say it's a junky business, the only thing I see that could bring people in is access to children. Not good. Everything about Roblox is scummy.
I'm in a strange situation, where my childs mother - who has fled the country - got back in contact with me, because our son was begging her to talk with me. This happened 2 weeks before xmas '24. The best present I could give him and it was what he wanted - was Robux. I gave him 20 Euro (He lives in Finland, I live in Canada) and he JUMPED FOR JOY! "I'M SO RICH!" I haven't been allowed into his life for the last 5 years, he's now almost 7. It's complicated. But I'm happy she's let me back into his life.
The last time I heard about it, was when someone discussed the shady practices in roblox. Many developers there behave like cartels. Many other developers are bullied out of the market, and a lot of unpaid labor and IP theft goes on. I tried to explain the situation to a 12 year kid, he had zero interest. And he just wanted to play and think it's the biggest thing to happen on earth. The game industry can easily nurture a toxic environment where the consumers don't care or don't know. So long as there's games to play.
The last video I watched was about children with gambling problems on counterstrike. I have the wrong take on everything. If kids are rich enough to have a gambling problem God bless them.
To understand Roblox I played this pretty addictive game called anime fighters simulator. After getting a few hours in. I just started AFK farming. The computer was left on for basically a year and a half straight lol. Massive waste of time and energy. The thing you’re missing is the developers also get paid on per hour of in game time per user. So it actually makes a negative feedback loop on itself. Developers are incentivized to make grindy games. Cuz they still make money from players who just play. Until they get rid of that, the developers will be incentivized to just keep those functions. There’s a huge side economy of cheats and hacks. It’s pretty crazy lol
The real money starts pouring in in 20 years when the Roblox generation are nostalgic adults trying reclaim lost youth with real money to spend and hardly any time to actually play and incur server fees for the company. Really it's just a matter of Roblox staying in business long enough to collect.
Nope. People plays games, not Roblox. BTW, kids do not become nostalgic. You can give them a better, more shinning toy and they will forget previous one in a few days.
@@alicaramba7680 Setting aside that crude caricature of how children operate, surely you understand that children eventually become adults, and that adults often eventually become nostalgic for things distantly remembered from their childhood. Those are core concepts of how humans work.
@@benjaminolson7206 It's your understanding of children as intelectualy emotionaly and psichologicaly developed human being capable of deep connection with things he/she doesn't even understand looks like caricature.
I think this is already occurring to some extent. I have met plenty of young adults (myself included) who play ROBLOX on a regular or semi-regular basis.
@@Prockski Thanks 🙂 forgot to delete my comment, I genuinely thought I heard $4m (was listening to the video rather than watching) and went back through to try and find the clip. Was shocked to see the $4b, that is OBSCENE! Why are so many people buying Robux and just letting them sit there lol?? 🤭
Wait so let me get this straight: >>Steam, Epic and Apple takes a cut and once every full moon some people be bitching about that >>Roblox taking 75% cut and no one bats an eye what?
To be fair, they take on all of the hosting costs, all of the tools development costs. Both of which are pretty substantial for online games. Think of them like an art studio that supplies everything from except the artist. And it’s freely accessible to everyone. But I think the company is awful, lots of scary things on and surrounding the platform. Watch the People make games Roblox videos.
They take "75%" including that 30% (average 22% as stated in the video). That means they are paying out 25% of 78%, or a 32% share. Still low, but not as low. They are also providing more than Steam/Apple.
Roblox is one of the many "avatars" that perfectly represent how paradoxical (and IMHO, unsustainable) the platform economy has become. We can't continue to consider prices and services that aren't profitable as "normal", especially, when the companies have millions of clients/users. In the long term, it simply can not work. And if we don't move out of those unrealistic price/goals/expectations sometime soon, it will definitely end in a crash.
Another reason why bots are so common in Roblox is because of premium payouts. Premium payouts are given by premium accounts to developers and are divided based on how long a premium account has spent on each game. This incentives games to support afk and bot farming because they don’t pay for the servers and they get more robux in addition to more visibility.
Reminds me of my time working at Wikia prior to becoming Fandom. We had thousands of wikis full of information on video games and popular TV shows. We produced none of the content but hosted the platform for creating content. The top 100 wikis accounted for 98% of all our page views. For the 8 years I was there, it was hugely profitable and at the end of my time there, I was managing $55M in gross annual revenue all based on other people's content and monetizing it with ads.
And most of Roblox's 2,500 employees are moderators. Fandom has legions of moderators that will gladly do the work for free, and most of them are adults. Roblox can't task children to review content not appropriate for children.
@@dualpapayas "Fandom has legions of moderators that will gladly do the work for free, and most of them are adults." That's not really true nowadays. I'm assuming by legion of moderators you mean the admins of the 250k+ wikis. Majority of wikis nowadays are created by kids. You can take a look at fandom's support forum and most users posting there by their questions and way of talking. The real difference is that fandom profits off ad revenue and is a wiki hosting platform. As long as a wiki for popular games exist people will browse Fandom's wiki and will generate revenue for Fandom because of the ads.
@@QuesQuestion What I mean is those top 100 wikis that generate the bulk of the revenue. The admins are usually professional and take their job seriously, despite not being paid a dime. That's how Fandom can get away with only having 300 paid employees, they don't need over a thousand additional employees making sure content changes are high quality or appropriate.
if bot are playing 24/7 then it would be pretty simple to limit the number of hours a day any account can play. i guess the bot farms could just open more accounts to get around that, but it adds work.
why don't you go into how weird it is that apple has a specific roblox rule in appstore - if you or i made a roblox clone, we'd be banned in appstore, but roblox is allowed.
It's not that weird. Apple wants to be paid its tax, and Roblox cycles money through. A clone wouldn't generate the kinds of money for Apple (at least initially), so Apple isn't going to make exceptions.
I would have explained honestly why Roblox charges 75% vs the other platforms. Hint: roblox is more than a management platform, its a development suite, howting and management platform with massive advertising. You are not getting most of that aside from distribution and user management from steam.
That's not tax evasion. The corporate income tax rate is only 21%, while the personal income tax rate is up to 45.4%. They'd actually pay less tax by keeping the profit in the company than if they're paying it out to their executives.
Our 11 year old foster child played blox fruits. I played it with him. You just grind the same thing over and over to get new items to use. I was terrible at pvp
As a prospective game developer, I was interested in developing games for Roblox, but it seems like the quality and variety of games are limited. So I disagree there are unlimited game possibilities because certain games are just not possible on Roblox. This is why it only attracts kids because adults expect better quality games and they won't find it on Roblox.
@@LeoLau-jw7ji I'm not knowledgable on this but won't their simply be more restrictions by making something simpler? In comparison to a game engine. Like the graphics for example.
As an adult who enjoys Roblox I can tell you there are a few games which would blow you away on Roblox. While most of those games aren’t insanely profitable, a few are and I’m sure have generated millions of dollars.
Great video but one thing the video de emphasizes is the stock market’s focus on adjusted EBITDA and Free Cash Flow. Stock market investors focus on these cash flow proxies instead of GAAP operating losses. In Q3, Adj. EBITDA was $55M and Free Cash Flow was $247M, so EBITDA margins of ~6% and FCF of 27%. This is the main reason Roblox trades so well as a stock. This is how most public market investors evaluate the stock and why they’re bullish on it as it combines growth with the cash generation.
Would be interesting to know how much of that 4B unspent currency belongs to accounts that have not logged on in 6 months and are unlikely to come back. That's free money just like expired gift cards.
I have a very hard time finding humanity in adults who use Roblox, apart from that you know it's a bad investment when your product is controversial & target audiences is 5 to 10 yrs old. Something's gonna break 😂
9:15 so sad that this equipment is used to create bot accounts when that could be used to solve real world problems and generate value in the economy. Video games, like real estate speculation, are starting to make me sick how it siphons off capital from worthy projects.
cry about it. do you also cry about sports, or toilet paper? "it makes me sick how toilet paper siphons off capital, when you can just use your hand to wipe, we can give that money to worthy projects"
Apparently they have a large number of software Engineers in California, one of the most expensive places to hire Engineers. A quick look at their career page shows 150 Engineering positions in San Mateo.
Idk but I'm guessing things like Epic's Unreal Engine 5 keep them up at night. Maybe they are trying to get to the point where their games mature with their audience. There's a lot more they'd need to do however.
@somethinglikethat2176 Yeah, that could be the reason cuase interms the game engine, It is on the low end, but that doesn't mean you can't do really carzy stuff it just harder and for the audience you could be right again, roblox really need a better project lead cuase, having the world think your platform is for kids, is not profitable.
If you create a game that can be grinded by bots, how are the players different to zombies? Doing tens or hundreds of hours of monotonious tasks until endgame is just pure brainrot and waste of time.
Never ever heard of it until very recently, business model is a bit weak but it shows some promise if they find a way to make money from it, it seems to have the traction.
HAHHAHAHA, no. We won't downgrade nor abandoning our steam backlogs. If we can buy a rig/console, we have enough money not to spend on rubbish like Roblox. Those who can't are too busy working.
I guess the main age group for Roblox playeds is probably 8 to...maybe 14? After that age player count probably starts to drop a lot. I'm 25 so unsurprisingly I don't get why Roblox is so interesting. YES I know you can craft all kinds of games but...they're still kinda half baked lol.
To those uninitiated, Hollywood accounting is to disguise their sales into losses so that actors, employees, and contractors don't get their due bonus (contract says they get a flat fee and percentage of revenue IF the movie is profitable). Even movies like the Titanic, Avatar, and Avengers End game, which reigned in billions, could appear as net losses in accounting. Lots of games could be done, such as having a shell company overcharge the company for mundane stuff. And the shell company returns the money after accounting is over. It's money l@undering in a way. And this paradoxical nonsense is so obvious, but actors and others can't sue about it if they want to keep their job for more than a month more.
Never ceases to amaze me how people can waste so much of their limited lifespan on such a useless and non-productive activity!!! Little wonder that the world we live in is falling apart.
What I don’t understand is if they know almost half of their users are children under 13 with no way to get robux other than begging their parents. Why not add a feature where you can watch ads for robux that caps each day or week. Kids get the robux they want, and robux gets easy money from kids watching ads. It’s the exact same model that a majority of mobile games use. Instead what Roblox is doing is releasing limited timed items and jacking up the price hoping that’ll make up for it. When in reality the only people who can’t afford that crap are people with disposable income like famous RUclipsrs.
Bro, you’re way off. It’s not losing money. How can it? It doesn’t pay its developers unless it makes money. Plus bought Robux. This dudes talking about buying accounts rather than buying Robux lol? Where is this data coming from? Some old ladies facebook page that’s making a rival roblox game? Woblox would be hysterical like roblox with a lisp ending up being the cheaper version.
A company can do major numbers, rip people off, and still lose money. Look at Uber. I’ve had them ACTUALLY fraudulently charge my card before and retroactively change fairs as well
👉 Head to brilliant.org/wallstreetmillennial/ to start your free 30-day trial and 20% discount on your annual premium subscription.
Too many creeps on roblox I hope it goes bankrupt
Can you do a video on Epic games next?
Almost as if the game needs to be shut down forever.
As a parent, its astonishing how Roblox has a plaform which is so extremely successful among children, yet loses money. My own child as well as many other children all was robux for Christmas.
Traditional f2p games will also have most of the players not spending anything. However, the BIG spenders have high paying jobs (or credit cards) and spend thousands a week on the game. I'm guessing there aren't maybe 8 year olds doing the same.
Need more ads@@iandakariann
Children don't produce much revenue. $20 worth of robux, they get once per year for Christmas is nothing compared to what adults are willing to spend.
My 10 year old autistic nephew can spend robux like a tiktok rapper who spends real cash.
The business model is exploitative and controversial, even worse the target audiences are kids.
If with all these little addicts and these businesses practices you can't swim in positive cashflow I'd say it's a junky business, the only thing I see that could bring people in is access to children.
Not good. Everything about Roblox is scummy.
My son spent his 20 bucks in Xmas robucks before the night was over. So I dunno either.
I'm in a strange situation, where my childs mother - who has fled the country - got back in contact with me, because our son was begging her to talk with me.
This happened 2 weeks before xmas '24.
The best present I could give him and it was what he wanted - was Robux. I gave him 20 Euro (He lives in Finland, I live in Canada) and he JUMPED FOR JOY! "I'M SO RICH!"
I haven't been allowed into his life for the last 5 years, he's now almost 7. It's complicated. But I'm happy she's let me back into his life.
Roblox has completely passed me by, must be getting old.
Never was drawn to play it. But in a way understand it's childish draw & simplicity that attracts toddlers to teen-agers
@@Alan_GATeen-hyphen-agers? How old ARE you, exactly? 😉
YeAH, I have a job, no getting any of my money :)
The last time I heard about it, was when someone discussed the shady practices in roblox. Many developers there behave like cartels. Many other developers are bullied out of the market, and a lot of unpaid labor and IP theft goes on.
I tried to explain the situation to a 12 year kid, he had zero interest. And he just wanted to play and think it's the biggest thing to happen on earth. The game industry can easily nurture a toxic environment where the consumers don't care or don't know. So long as there's games to play.
How old are u?
"Most kids don't have jobs" - lol
The last video I watched was about children with gambling problems on counterstrike. I have the wrong take on everything. If kids are rich enough to have a gambling problem God bless them.
He had to account for the fact that kids in arkansas yearn for the mines lol
This is unconfirmed.
haha not true. In the world's poorest countries, slightly more than 1 in 5 children are engaged in child labour.
Some kids walk around with lawn mover money
To understand Roblox I played this pretty addictive game called anime fighters simulator. After getting a few hours in. I just started AFK farming. The computer was left on for basically a year and a half straight lol. Massive waste of time and energy. The thing you’re missing is the developers also get paid on per hour of in game time per user. So it actually makes a negative feedback loop on itself. Developers are incentivized to make grindy games. Cuz they still make money from players who just play. Until they get rid of that, the developers will be incentivized to just keep those functions. There’s a huge side economy of cheats and hacks. It’s pretty crazy lol
Developers only make money from the playtime of users with Roblox Premium
The real money starts pouring in in 20 years when the Roblox generation are nostalgic adults trying reclaim lost youth with real money to spend and hardly any time to actually play and incur server fees for the company. Really it's just a matter of Roblox staying in business long enough to collect.
Yeah tbh I just got off playing Roblox. There’s a lot of us gen z folks on there playing the mature games like strategy or horror
Nope. People plays games, not Roblox. BTW, kids do not become nostalgic. You can give them a better, more shinning toy and they will forget previous one in a few days.
@@alicaramba7680 Setting aside that crude caricature of how children operate, surely you understand that children eventually become adults, and that adults often eventually become nostalgic for things distantly remembered from their childhood. Those are core concepts of how humans work.
@@benjaminolson7206 It's your understanding of children as intelectualy emotionaly and psichologicaly developed human being capable of deep connection with things he/she doesn't even understand looks like caricature.
I think this is already occurring to some extent. I have met plenty of young adults (myself included) who play ROBLOX on a regular or semi-regular basis.
4 Billion $$$USD in unspent Robux? Wow, throw in a couple of unused and underused gift cards and you're talking real $$$! 4 Billion!?!?!
Yoo
I thought he said 4 million, not 4 billion? Did I mishear?
@@novalinnheit’s 4 billion.
@@Prockski Thanks 🙂 forgot to delete my comment, I genuinely thought I heard $4m (was listening to the video rather than watching) and went back through to try and find the clip. Was shocked to see the $4b, that is OBSCENE! Why are so many people buying Robux and just letting them sit there lol?? 🤭
Wait so let me get this straight:
>>Steam, Epic and Apple takes a cut and once every full moon some people be bitching about that
>>Roblox taking 75% cut and no one bats an eye
what?
S/E/A take 30%. Roblox is taking 75%? I heard about the company before, but never know it is this big.
To be fair, they take on all of the hosting costs, all of the tools development costs. Both of which are pretty substantial for online games. Think of them like an art studio that supplies everything from except the artist. And it’s freely accessible to everyone. But I think the company is awful, lots of scary things on and surrounding the platform. Watch the People make games Roblox videos.
@@aarch64 Fair points👍
@@JSiuDevEpic takes 12% on its store, 5% for its engine if you use another store
They take "75%" including that 30% (average 22% as stated in the video).
That means they are paying out 25% of 78%, or a 32% share. Still low, but not as low. They are also providing more than Steam/Apple.
Roblox is one of the many "avatars" that perfectly represent how paradoxical (and IMHO, unsustainable) the platform economy has become.
We can't continue to consider prices and services that aren't profitable as "normal", especially, when the companies have millions of clients/users. In the long term, it simply can not work. And if we don't move out of those unrealistic price/goals/expectations sometime soon, it will definitely end in a crash.
Another reason why bots are so common in Roblox is because of premium payouts. Premium payouts are given by premium accounts to developers and are divided based on how long a premium account has spent on each game. This incentives games to support afk and bot farming because they don’t pay for the servers and they get more robux in addition to more visibility.
Some games have a inflated player count due to default avatar bots doing macro things
and the Developer only paid in scrips
Reminds me of my time working at Wikia prior to becoming Fandom. We had thousands of wikis full of information on video games and popular TV shows. We produced none of the content but hosted the platform for creating content. The top 100 wikis accounted for 98% of all our page views. For the 8 years I was there, it was hugely profitable and at the end of my time there, I was managing $55M in gross annual revenue all based on other people's content and monetizing it with ads.
And most of Roblox's 2,500 employees are moderators. Fandom has legions of moderators that will gladly do the work for free, and most of them are adults. Roblox can't task children to review content not appropriate for children.
@@dualpapayas "Fandom has legions of moderators that will gladly do the work for free, and most of them are adults." That's not really true nowadays. I'm assuming by legion of moderators you mean the admins of the 250k+ wikis. Majority of wikis nowadays are created by kids. You can take a look at fandom's support forum and most users posting there by their questions and way of talking. The real difference is that fandom profits off ad revenue and is a wiki hosting platform. As long as a wiki for popular games exist people will browse Fandom's wiki and will generate revenue for Fandom because of the ads.
@@QuesQuestion What I mean is those top 100 wikis that generate the bulk of the revenue. The admins are usually professional and take their job seriously, despite not being paid a dime. That's how Fandom can get away with only having 300 paid employees, they don't need over a thousand additional employees making sure content changes are high quality or appropriate.
@@dualpapayas I see now.
if bot are playing 24/7 then it would be pretty simple to limit the number of hours a day any account can play. i guess the bot farms could just open more accounts to get around that, but it adds work.
on another note, having bots play the game inflate their stat. Look at so many millions active users per day!
Wow super interesting! Wouldn't have believed that such a large company with so many players operates at a loss. Mind boggling!
why don't you go into how weird it is that apple has a specific roblox rule in appstore - if you or i made a roblox clone, we'd be banned in appstore, but roblox is allowed.
It's not that weird. Apple wants to be paid its tax, and Roblox cycles money through.
A clone wouldn't generate the kinds of money for Apple (at least initially), so Apple isn't going to make exceptions.
I would have explained honestly why Roblox charges 75% vs the other platforms. Hint: roblox is more than a management platform, its a development suite, howting and management platform with massive advertising. You are not getting most of that aside from distribution and user management from steam.
Bots everywhere, low revenue per user, and a ton of angry developers. Roblox really needs to fix its model ASAP or risk crashing!
good analogy between roblox and youtube, since both of them seem to have difficulty with having profits, ig?
RUclips is a cash cow for google
@@xavierlozinguez If not its because Google is draining it having to pay for Google R&D and stuff.
No mention of executive salaries as expenses 🤔 I don't believe Roblox is not profitable it's just a tax evasion tactic.
That's not tax evasion. The corporate income tax rate is only 21%, while the personal income tax rate is up to 45.4%. They'd actually pay less tax by keeping the profit in the company than if they're paying it out to their executives.
All of that is factor into expenses. Executives are still workers of the companies.
I don't think kids started making games on roblox to make money. I don't understand why there has to be a monetary reason to make a game.
That's how it all starts. But then people or developers serious about money always go in with a strong motivation and competitive nature.
Kids make games for fun, developers (usually exploit young adults and college kids) who want to make cheap games and get paid make Roblox games for $.
Hindenburg is a great place to find out more about Roblox and their pedoscape.
As an investor, I could see where Microsoft would come in and buy them considering they take a large percentage of the revenue already.
Don't think it will pass antitrust
2.5 hours? Try 4 or 5 easily. Any time my daughter has girlfriends over they'll play for hours and she'll play for hours on her own at times.
Yeap, you are already estranged father. BTW, does she lean anything in that time bar consuming?
The figures at 5:27 look pretty fishy; $245M on infrastructure? $365M on R+D? This seems improbable
The R&D is total bullshit. Must be running a scheme where the companies Roblox pays for that are connected to management.
Thanks for explaining what Roblox actually is. Ive asked my child many times and she struggled to explain it to me.
lots of these internet outfits never make any money back in 2000 people spoke of the "burn rate" how long till the money dries up.
Of all the countries, Turkey thinks that Roblox games abuse children?😂 so telling
Lol. Ask any ex military what happens to boys in the middle east.
are they wrong?
Our 11 year old foster child played blox fruits. I played it with him. You just grind the same thing over and over to get new items to use. I was terrible at pvp
As a prospective game developer, I was interested in developing games for Roblox, but it seems like the quality and variety of games are limited. So I disagree there are unlimited game possibilities because certain games are just not possible on Roblox. This is why it only attracts kids because adults expect better quality games and they won't find it on Roblox.
this is factually incorrect.
@@-eternal how tho.
I mean what part.
The adults part.
Or the any game possible?
@@ArafathSheikh395 you can make basically anything it's just most good devs well ya know don't make roblox games
@@LeoLau-jw7ji I'm not knowledgable on this but won't their simply be more restrictions by making something simpler?
In comparison to a game engine.
Like the graphics for example.
As an adult who enjoys Roblox I can tell you there are a few games which would blow you away on Roblox. While most of those games aren’t insanely profitable, a few are and I’m sure have generated millions of dollars.
Great video but one thing the video de emphasizes is the stock market’s focus on adjusted EBITDA and Free Cash Flow. Stock market investors focus on these cash flow proxies instead of GAAP operating losses. In Q3, Adj. EBITDA was $55M and Free Cash Flow was $247M, so EBITDA margins of ~6% and FCF of 27%. This is the main reason Roblox trades so well as a stock. This is how most public market investors evaluate the stock and why they’re bullish on it as it combines growth with the cash generation.
11:31 does it really take 26 months to spend it all? i would imagine kids would finish spending their robux in a matter of days
It is probably boosted by people who buy robux a lot.
RBLX is up over 50% since the low on the day Hindenburg Research announced it was short the stock.
Not true about when people buy credit its instantly recognised. Not when they use it.
Would be interesting to know how much of that 4B unspent currency belongs to accounts that have not logged on in 6 months and are unlikely to come back. That's free money just like expired gift cards.
I have a very hard time finding humanity in adults who use Roblox, apart from that you know it's a bad investment when your product is controversial & target audiences is 5 to 10 yrs old.
Something's gonna break 😂
9:15 so sad that this equipment is used to create bot accounts when that could be used to solve real world problems and generate value in the economy. Video games, like real estate speculation, are starting to make me sick how it siphons off capital from worthy projects.
cry about it. do you also cry about sports, or toilet paper? "it makes me sick how toilet paper siphons off capital, when you can just use your hand to wipe, we can give that money to worthy projects"
if they introduce a "best before" date then they can reduce the time between the buying of their currency and when they are actually spent
what the hell could they be spending hundreds of millions of dollars on in R&D?
New ways to exploit children while keeping it legal.
They make everything that the devs use, they make the game engine, the platforms to host said games on, etc, plus the server and infrastructure.
Apparently they have a large number of software Engineers in California, one of the most expensive places to hire Engineers. A quick look at their career page shows 150 Engineering positions in San Mateo.
Idk but I'm guessing things like Epic's Unreal Engine 5 keep them up at night.
Maybe they are trying to get to the point where their games mature with their audience. There's a lot more they'd need to do however.
@somethinglikethat2176 Yeah, that could be the reason cuase interms the game engine, It is on the low end, but that doesn't mean you can't do really carzy stuff it just harder and for the audience you could be right again, roblox really need a better project lead cuase, having the world think your platform is for kids, is not profitable.
"losses"
How does he even make that mistake? Wow
Show some respect to Mr. Quinns of shut up and sit down Fame.
What is absurd to me is that there are PE shops buying stakes in roblox developers in roll up strategies.
Pls make a video analyzing youre channel economics
Weren't there some recent judgements saying that developers could sidestep the walled gardens
Semi-walled gardens by memory. If it's completely walled it was ruled ok. Might have been over turned on appeal but.
They don’t sell advertising on the platform?
No only Roblox games, items and groups can be promoted on roblox
Maybe they should or at least PSAs 😂
If you create a game that can be grinded by bots, how are the players different to zombies? Doing tens or hundreds of hours of monotonious tasks until endgame is just pure brainrot and waste of time.
Never ever heard of it until very recently, business model is a bit weak but it shows some promise if they find a way to make money from it, it seems to have the traction.
Well researched!
DON'T EVER PUT ME ADVERTISMENT I HAVE PREMIUM
Seems like they could reduce their operating expenses if they found a way to ban the bots.
This is why venture capital is so bad for the economy. This company should have tanked in less than 6 months and not exist anymore
No way they are losing money,, I think they are exaggerating costs and undereporting profits to evade taxes
As a non gamer, i always got confused between roblox and Minecraft. They look very similar
I never really knew what Roblox was (I'm 52). So this was a helpful and informative video. Thanks.
I will not be using this platform to make games. 25% is crazy
Thanks for these videos. At least for those that are actually interested in long term investments.
If Roblox made Cathie Wood a character she'd buy 10 million shares.
Let me guess, ever single 'Popular' game is an RPG because they are farmables.
Been playing since 8 years old and invested since 2010. Best game of all time that is created by the PLAYERS
Since 2021*
playing roblox games is first step for your kid to go full brainrot;
making roblox game(s) is first step for your kid to become rich.
I absolutely loved the idea of Roblox. Bought a bunch of stock when it dropped. Was a great investment until it wasn't 😂
No way in hell R&D for a basic software game cost that much.. they probably tax evading
Game engine development isn't cheap.
almost as if making abysmal changes to your platform all the time for 8 years straight will make people stop using it
That is not why Roblox is losing money.
@Cutepanda1943 it can't help user retention.
My kid and their friends love Roblox!❤
Oh shit I guess it's this generations Miniclip
A rare case of bot hosters fighting the good fight.
At 8:15, yeah, looks like they should pivot a bit to Gen-Xers & older Millennials who will probably spend 3-5X more.
HAHHAHAHA, no. We won't downgrade nor abandoning our steam backlogs. If we can buy a rig/console, we have enough money not to spend on rubbish like Roblox. Those who can't are too busy working.
If you’re over 20, Roblox is just knock-off Lego
they won't get real gamers, maybe can attract niche audience - furries and ponny lovers?
@@moofymoo They have Second Life.
Buy btc with the free cash flow to offset the losses and increase share price
Meanwhile, my preteen is learning how to code using Roblox. 😄
RUclips almost certainly makes some of its own content
Tax fraud tycoon is crazy
Not at all being sarcastic. Your wisdom and insight takes away my anxiety. Looking forward to a 2025 with evermore dependent dependants.😊
They over pay themselves for sure too
Of course you can become millionaire from botting, there's a reason why bot farms are among most profitable online businesses.
In P2W "AAA" games it's more profitable. Roblox games however wouldn't be.
7:30 Wait what? Roblox invests into S&M 53 Million? Wtf
I guess the main age group for Roblox playeds is probably 8 to...maybe 14? After that age player count probably starts to drop a lot. I'm 25 so unsurprisingly I don't get why Roblox is so interesting. YES I know you can craft all kinds of games but...they're still kinda half baked lol.
Let me guess is it accounting fraud like they do in Hollywood? That would be the least sketchy thing the company has done
To those uninitiated, Hollywood accounting is to disguise their sales into losses so that actors, employees, and contractors don't get their due bonus (contract says they get a flat fee and percentage of revenue IF the movie is profitable). Even movies like the Titanic, Avatar, and Avengers End game, which reigned in billions, could appear as net losses in accounting. Lots of games could be done, such as having a shell company overcharge the company for mundane stuff. And the shell company returns the money after accounting is over. It's money l@undering in a way.
And this paradoxical nonsense is so obvious, but actors and others can't sue about it if they want to keep their job for more than a month more.
How the hell is it losing money? it's printing money
Didn't print enough.. poor planning
Squid Game season 2 came out. Good time to buy Roblox for Squid Game pump
Never ceases to amaze me how people can waste so much of their limited lifespan on such a useless and non-productive activity!!! Little wonder that the world we live in is falling apart.
It’s gaming and they’re kids bro chill
What about Minecraft.
Loses?
Money laundering op
RUclips is the same😂
maybe Roblox should only pay developers 5%? 🤔
Good video
Wtf it's a rare skill to take 75%and loose money 😂.
i think roblox should've capitalized it's users with promotion and video ads that is targeted to child to teen audiences
I stopped playing roblox because in 2022 there was a report that they doing child labour.
If you don’t want to support Roblox just don’t buy any robux.
300 million dollars for “researching and developing”???? What exactly are they researching?? How to land a man on the moon???
They are probably researching stuff like server upkeep and networking, and new developer tools for roblox studio, still, thats a lot of money
I think it’s probably a tax reduction thing else they would be in profit
@ it must be right? As a software engineer seems absolutely absurd to me.
As a Racist, it's sad to watch this video
Why?
The AI-smoothed or AI-generated narrating voice ruins this content for me.
What I don’t understand is if they know almost half of their users are children under 13 with no way to get robux other than begging their parents.
Why not add a feature where you can watch ads for robux that caps each day or week. Kids get the robux they want, and robux gets easy money from kids watching ads.
It’s the exact same model that a majority of mobile games use. Instead what Roblox is doing is releasing limited timed items and jacking up the price hoping that’ll make up for it. When in reality the only people who can’t afford that crap are people with disposable income like famous RUclipsrs.
looses billions but execs will earn 100s of million i bet
Make books great again!
75% of my work better to delete the game to sold to this scamers
Roblox is my metaverse bet
Bro, you’re way off. It’s not losing money. How can it? It doesn’t pay its developers unless it makes money. Plus bought Robux. This dudes talking about buying accounts rather than buying Robux lol? Where is this data coming from? Some old ladies facebook page that’s making a rival roblox game? Woblox would be hysterical like roblox with a lisp ending up being the cheaper version.
A company can do major numbers, rip people off, and still lose money. Look at Uber. I’ve had them ACTUALLY fraudulently charge my card before and retroactively change fairs as well
It's a publicly traded company. They don't have a P/E ratio, they are not turning a profit.
It will die faster than they know 😂 game sux and once that one generation ages out totally, it’s over
Roblox is a rip off