Roblox's Revenue Boost: Premium Users Can Now Sell 3D Creations

Politics, News Sept. 10, 2023, 7:47 a.m.

Roblox aims to boost revenue by allowing premium users to sell 3D creations, expanding beyond 2D items. The move follows a revenue decline, and the company offers new coding tools for interactive experiences.

Roblox, the widely popular gaming platform for kids, is taking steps to boost its revenue by expanding the capabilities for users to create and sell a wider variety of digital goods. The company recently announced that subscribers to Roblox's premium plans, which offer a monthly allocation of the virtual currency Robux, will now have the ability to sell their 3D creations to other users. This marks a significant shift from the previous limitations, where Roblox players were restricted to crafting and selling 2D items like virtual clothing and had to undergo a rigorous application process to be part of the user-generated content (UGC) program, enabling them to create and sell 3D assets.

Manuel Bronstein, Chief Product Officer at Roblox, emphasized the significance of this change, stating, "Now you have the marketplace open to everybody, and you will have the opportunity to have a lot of creation on the platform. We know that with increased creation comes more engagement and more users."

Roblox made its debut on the stock market in 2021 with a staggering market capitalization of $38 billion, driven by the excitement surrounding its digital universe, where people could interact, play games, and participate in a thriving virtual economy. However, the company's revenue growth has witnessed a substantial slowdown, plummeting from over 100% in several periods of 2021 to a modest 15% year-over-year increase in the latest quarter. This decline has not gone unnoticed by investors, leading to a 72% drop in the company's stock price, and its market capitalization has shrunk to approximately $18 billion.

Roblox's latest announcement coincides with its annual developer conference in San Francisco. The company primarily derives its revenue from the sale of Robux. When users use Robux to purchase virtual items within games, Roblox shares 30% of the revenue with the game developers. Earlier this year, the company also ventured into online advertising as part of its efforts to diversify its revenue streams.

By allowing Roblox users to create and sell 3D goods, the company hopes to attract more paying subscribers willing to invest in this feature. Users, who are required to provide photo identification, will be charged a fee of 750 Robux to upload 3D accessories and clothing to the marketplace. However, they can submit their custom 3D avatars' bodies and heads free of charge, with users paying $105 for 30,000 Robux.

In addition to empowering users, Roblox is also offering new coding tools to developers creating custom games on the platform. These tools are designed to facilitate the creation of interactive experiences that promote communication between users, such as digital phone booths for calling Roblox friends. This suite of communication-focused services, known as Roblox Connect, even has the potential to enable real-life phone calls among users on the platform, provided that everyone has an account.

Roblox's latest initiatives represent a strategic move to reignite growth and engage both users and developers in innovative ways. By opening up the marketplace to a broader range of 3D creations and fostering enhanced communication, the company aims to reclaim its position as a vibrant and growing digital ecosystem.