onStrategy

Entire industries are changing in front of our eyes

December 1, 2022
< 1 minute

Strategy | Business Models | Tech

I saw recently in a company exactly this invisible wall. One can say “wo what? It’s just gaming…”. Well, not really.

There are 3 bn gamers out there and only 300m hardcore (ie. own a console etc). How about earning some money while playing? A totally different shift in strategy, right? Roblox is at the front of this new business model.

 


Play to earn games are now the new standard for many players. Millenials vs Gen Z

Millenials vs Gen Z

 

“Play to earn” economy is here to stay. Roblox developers and creators earned over $500m in Robux, its digital currency, during 2021 which represents more than 50% YoY. By buying Robux you can purchase upgrades for your avatar or buy special abilities in experiences. (the in-game economy is 60bn USD, btw)

What TikTok did to Facebook, and what Shopify did to Amazon, will Roblox do to the traditional gaming industry.

Roblox pays out around one-third of its earnings to its creators, but in exchange receives a vast library of material and a strong marketing engine, since producers and users naturally share their experiences. 79% of Roblox’s 865 full-time workers are engineers, making it a more technologically focused corporation than Apple, Netflix, or Google.

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