Roblox Investor Day shows how the company plans to take your money
Roblox Investor Day took place on September 15, and while the company demonstrated its commitment to attracting older audiences who have higher disposable incomes, it also showed how it planned to transform the company to get people to spend more money on the platform.
Due to its status as a public company, the sandbox game is under investor pressure to maximise company profits for shareholders. While the COVID-19 pandemic spurred engagement and spending within Roblox, the company has recently failed to reach projections on key metrics, which in turn has negatively impacted the company’s stock price and hurt investor confidence.
Roblox already profits from selling premium subscriptions and taking cuts of digital content sold and distributed on the platform. It also allows developers to monetise their games through in-game cosmetics and other items, typically collectables and game passes. As a result, many developers have incorporated loot boxes and pay-to-win mechanics into their games, which some people find ethically questionable. Regardless, even though the developers profit, Roblox also takes a significant cut, to the extent that even one of Roblox’s most prominent game developers has complained about the company’s rates. Roblox also makes money by allowing game developers to advertise their games on the platform.
However, during Roblox Investor Day, the company shared its vision for how it hopes to make even more money from users. Beyond the obvious move to increase revenue by engaging older audiences, Roblox also revealed various other monetisation strategies designed to increase the company’s bottom line.
Roblox touted its immersive advertising, which involves the sale of in-game billboards and portals that take
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