How Roblox Makes Money

Roblox is a multiplayer gaming platform that enables its users to create games and, likewise, play games created by others.

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

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

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

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. 

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

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

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

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

robux

ADVERTISING

Brands like Gucci or Nike have created their own games on the platform and thus compensate Roblox for the exposure. 

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

LICENSING

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