How Roblox Makes Money

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Over 50 million people, most of whom are below the age of 18, log into the platform every day.

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The games are created in the platform’s proprietary game development software called Roblox Studio.

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Roblox was founded in 2004 by David Baszucki and Erik Cassel. Baszucki had previously sold his first company in 1998 for $19 million.

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The key to Roblox’s explosive growth was the introduction of Robux, the game’s native currency, which allowed developers to get paid for their creations.

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Roblox went public in March 2021 on the New York Stock Exchange. Before the IPO, it raised over $855 million in funding.

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A lack of child safety, the exploitation of developers, and the platform’s auction-based marketplace remain major concerns for parents and experts alike.

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But how does Roblox, which is free to use, actually make money?

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The majority of Roblox’s revenue comes from the sale of Robux, which are available as a one-time purchase or via a subscription.

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ADVERTISING

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Roblox has partnered with firms like Walmart, which pay a licensing fee, to create physical versions of its popular digital avatars and items.

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