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I don't think that valuation is even remotely close to realistic.
Not necessarily. A lot of them set target prices in conjunction with their financial institutions like Goldman Sachs which then found interest was higher than expected so they raised the IPO prices even further. Forgoing a financial institution to direct list is skipping that step where you can kind of gauge interest and test waters. Like my post said, Unity was able to raise their IPO price by $20 before it went live to anyone which is more money in the companies pocket. Then the doubling after that isn't necessarily bad, the execs and employees then get to sell their personal shares at a higher price after a lock up period. Sure the company didn't raise as much capital but at least they gauged IPO interest and got more than listing directly at what they perceived their value to be. Right now this direct listing the employees can sell their shares immediately if they want, but they won't see that huge boost that exclusivity of an IPO has been giving this year.
Roblox is basically just taking a gamble they aren't undervaluing themselves. Maybe they are over-valuing though? It also tells me execs want to cash out faster than an IPO would allow.
Neither do I but I'm extremely out of the loop about this game.
Yep. I feel ya. This game is a huge cash cow and is far from cheap. I still don't get it but it's become the cool thing amongst the kids. My 10 and 13 year old want nothing except robux. It's absolutely insane.
Bilibili does a lot more than games so it isn't a 1 to 1 comparison, but their stock has risen from $19.25 to $111.07 this year. I bought 100 shares in the $20s and am kicking myself for not continuing to increase my position as it rose. It really shows no signs of stopping.. it's now got a market cap of over $40B. Not quite as drastic a growth as this rise for Roblox (something closer to 5.5x instead of 7x) but a lot of hot companies have seen massive growth this year.
You know my pain. I guess its the same as collected Pokemon cards or some other thing my older kids did. I gotta be honest, I don't know what exactly they spend it on but they (7, 10 and 11) sure do spend it.
I'm trying to remember when I was their age what did we spend our money on. Garbage Pale Kids? Pogs? Marvel Cards? Fleer and Upper Deck?
That's madness
My kids played it when they were younger, not so much anymore, I think they grew out of it a couple of years ago
I don't miss fucking Robux
Anyone who has no idea what Roblox is... here's a copy/paste of my post from the last Roblox thread.
I've also been asked about monetization/robux and whatnot before so here's some info on that too for anyone curious. When your kid spends robux playing a game, we (the developer) get something like 70% of those Robux spent. Once enough gets collected, here are the cashout rates we can use to convert those Robux into USD. There are absolutely people cashing the higher tiers every month. I hope this will give insight as to why there are so many low-quality underproduced MTX-filled cash grabs on the platform.
I've also been asked about monetization/robux and whatnot before so here's some info on that too for anyone curious. When your kid spends robux playing a game, we (the developer) get something like 70% of those Robux spent. Once enough gets collected, here are the cashout rates we can use to convert those Robux into USD. There are absolutely people cashing the higher tiers every month. I hope this will give insight as to why there are so many low-quality underproduced MTX-filled cash grabs on the platform.
I have several coworkers with young kids and they've mentioned Roblox a few times - it sounds like there's a lot more usage of it directly by schools / educational programs than I can really recall Minecraft ever getting close to, and that has obviously gone up during lockdown.
Do not buy this IPO lol. It's going to be Snapchat (huge IPO, everyone loses a ton of money immediately after) except worse.
My kids love Roblox but it's a DMCA nightmare, and once these rights owners smell money I can't imagine how Roblox makes it out the other end. It's also hugely predatory for children which will probably attract attention once they're a huge public company.
My kids love Roblox but it's a DMCA nightmare, and once these rights owners smell money I can't imagine how Roblox makes it out the other end. It's also hugely predatory for children which will probably attract attention once they're a huge public company.
This makes me, a grown adult, want to play this game. Pizza Death Stranding :DWell, it has the pizza Death Stranding, for starters :v
Kinda but no centralized hub or anything, the central idea is more an easier-to-develop PS4 Dreams while also having a highly active online playerbase.
You can find several genres or games inside the platform, like the one where you build an airplane, to the one you role play as a superhero, or there was one where the creator made a gallery that was a constantly updating fictional story (You would read more about as you advanced through the building)
This video was featured in a past Game Awards show, and I think it encompasses how reachable Roblox makes design for kids, while also being a fun place to hang out with friends
And it runs well on lower-end devices, very accessible for most of the world.
Holy shit....... Like, damn is this what it feels to be old? Completely missed every single bit of this ridiculous popular phenomenon.
I learned of its existence cause there is an entire sub community that offers code obfuscation for Roblox since it uses lua. One of the discords has 10k members. Apparently stealing code is so rampant many resort to paid obfuscation lol. The economy for this game is nuts.
I was gonna say the same thing! I know it's super popular with kids and that's why it's worth so much, but I only ever see or hear people play the weird games or roleplaying stuff. I tried out this Sonic Adventure game in Roblox and its... Way too good. The one you posted looks more advanced than the one I played though.
The crazy part is that it came out 15 years ago. It predates the Minecraft open beta by 3 years.
Apparently they have dreams (pun intended) to venture in the AAA world eventually:
corp.roblox.com
Home
Roblox is reimagining the way people come together. Our platform enables anyone to create, connect, and express themselves in immersive 3D experiences.
corp.roblox.com
It's one of the most popular online game in the world with 164million players ( more than double the players of COD Warzone), it's somewhere between Minecraft , Dreams and a Lego game.
It's huge with kids.
30million does sound bonkers when you consider MS paid 2billion for Minecraft
Not at all. My kids love it and we haven't spent a cent on it.
I have 6 and 9 year old sons. Them and all their friends love this shit. I'm still shocked by the valuation.
That was my initial thought as well, but now I can see the appeal. It is very simple and yet, it has hundreds of playground to choose from. It's a perfect game for game streamer. I found it much more interesting than Minecraft, actually.
The key thing to see here is that those revenues are less that GTA Online makes, and that Roblox valuation is 30% higher than the current market cap of Take Two Interactive.A valuation of a game that is more than 30 times what it will make in a year (~$588m through 3 quarters) during covid. Yeah I'm going with over-valuation.
Global Roblox Corporation quarterly revenue 2023 | Statista
In the fourth quarter of 2023, gaming company Roblox Corporation generated total revenues of over 749.9 million U.S.www.statista.com
I thought the minecraft purchase was a smart play but that was for far less 8 years ago. I also think minecraft has longer legs.
THAT'S A SPICY MEATBALL of a valuation.
[Edited to add: Obviously what's driving the valuation is that revenue trendline. I'm guessing the idea is that if they could get to a point where they're doing $2B annually in revenue and $1B in licensing then the price is good value.]
Every time I read an update about the continued success of platforms like Roblox and Minecraft, I can't help but think about what Dreams did wrong, and how it could be improved.
In comparison, the amount of revenue and player engagement those much older projects are generating is hard to ignore. I just hope it's not too late for Sony/Media Molecule to implement the necessary solutions moving forward.
Just hearing the name of this game makes me kind of angry. All the kids i know play this UGLY as hell game and there I am watching them as they play it in 15-20fps(tablets shitty specs), destroying their eyes and it seems to not be an issue at all to them or their parents. It baffles me how they just don't care at those unbelievably BAD graphics in an era where modern games look absolutely beautiful. I just don't get the appeal. The videogames industry makes me sad nowadays.
I would've done the same honestly. If my kid had to start gaming at that age, it would definitely be at least a good looking game and be played under complete parental control. Heck, i started playing at the age of 6 and my first games were on Atari2600 playing with everyone in the family.
Just in the sheer volume of Roblox gift cards we go through in my store, I wouldn't be shocked. It was literally the single most asked for item this 4th quarter.
This is such a weird take. Are you an actual parent? You would be sad that your kid is playing a game where players create and share games with one another because it doesn't have graphics you approve of? You don't understand the appeal of the creative power of lego in video game form for kids...?
I'm so blown away by this sequence of posts
Oofing all the way to the bank
Roblox is something I wish I had growing up, seriously it's free and if you can't afford games there are tons and tons of games to play
Some of them are pretty fun
but, like many other games they can bully users for being "noobs" by not having robux and it can add up like any other online game. When buying my little cousins robux they said it'd stop kids picking on them, kinda messed up really
Roblox is something I wish I had growing up, seriously it's free and if you can't afford games there are tons and tons of games to play
Some of them are pretty fun
but, like many other games they can bully users for being "noobs" by not having robux and it can add up like any other online game. When buying my little cousins robux they said it'd stop kids picking on them, kinda messed up really
"30 billion dollars!? What makes them think they can get that much" -Raiden MGS2
My 8 year old and his friends are obsessed with Roblox. It's nuts. The game is basically just an engine for users to create their own content, and there is an awful lot on there. There are full-blown, fully featured multiplayer worlds on this thing, each individually monetised. They're often P2W grinders, or glorified endless clicker type games (at least these seem to be the ones my son gravitates towards) but anyone doubting how huge this game is just needs to load it up and take a look at the numbers the biggest games on it are doing. It's fucking nuts. There are fully-fledged Dev houses creating content just on Roblox, and making a shitload of money.
Yea looks kinda bad reading the posts as a sequence. I am not a parent and basically I was saying how against I am of games being played at unplayable fps which seems to be acceptable by kids when we all know how bad it is for the eyes.
Dreams needed to be F2P and on PC. And those fuckups are on Sony, not Media Molecule.
Roblox is garbage but it's kinda fun and I see the appeal of it. My niece plays it all the time.
I remember watching her play a school themed game that used the Balamb theme from FF8 lol.
I remember watching her play a school themed game that used the Balamb theme from FF8 lol.
its available on the phone or PC you used to type this comment.