MarketWire x Pixels & Profits | Roblox Domination: #1 Downloads and #1 Revenue
MarketWire x Pixels & Profits | Roblox Domination: #1 Downloads and #1 Revenue
While Roblox continues to struggle with profitability and excessive SBC, usage and revenue continue to dominate!
What’s shakin Gamemakers,
Last week, Roblox hit #1 in worldwide downloads and revenue for mobile. Well, the good news is that we already discussed Roblox a bunch last month on our Pixels & Profits podcast (whoops, I forgot to publish, but I'm doing it now!).
See below to check it out!
On a more personal note, happy New Year to all of you, and I hope you have a great 2024. Unlike many of you, leading with optimism and resolutions for the New Year, I’m starting with suffering!
You read that right. As Viktor Frankl wrote in his book Man’s Search for Meaning:
If there is a meaning in life at all, then there must be a meaning in suffering. Suffering is an ineradicable part of life, even as fate and death. Without suffering and death human life cannot be complete.
For anyone else suffering, whether it’s in your personal life or game development (or both in my case), finding hope and meaning in suffering is everything! I am suffering now but looking forward to a great rest of 2024.
Happy New Year!
Top 10 Charts
Oh damn, Roblox hit #1. It’s generally in the top 10 for downloads but has hit #1 in downloads and dethroned BOTH Royal Match (the king of revenue) and Monopoly GO for #1 worldwide revenue. Congratulations!
It's impressive that SayGames has two games in the worldwide top 10 downloads.
Huge jump by Honkai: Star Rail by 55 spots to hit top 10 revenue last week.
What in the heck, Among Us! came to mobile? Welcome to top 10 in US downloads.
I still don’t get how Dragon Ball Legends does so well, but it’s been a monster for years. Good for Bandai Namco!
Cookie Run: Kingdom, new at #5 top downloads in China, is a team battle RPG and kingdom builder.
我自为道, aka The Legend of Hongxuan at #8 top downloads in China by JJWorld, is a beautiful anime-style traditional martial arts-themed MMO team battle RPG game.
Top 10 Mobile Publishers
Top 10 Steam Games
Nice jump by the two shooters, PUBG and Apex Legends, to achieve top revenue on Steam last week!
🎮 Game Over Update
Well, folks, the young blood Arthur Trusov and I have been recording a podcast where we go over Marketwire data and gaming news.
It’s called GameOver (feel free to try it out): Game Over YouTube Channel.
We wanted to give it a try, and so far, the results have not been great, at least on YouTube. Lol.
If you want to check it out, you can check out last week’s episode below.
If you want to see more, let us know; otherwise, we may try to experiment just a bit more before shutting it down.
🔦 Spotlight | Roblox: A Deep Dive into the Gaming Giant’s Business and Future Prospects
Hey Game Devs and Industry Enthusiasts!
🎧 Listen on Spotify, Apple Podcasts, or Anchor
Speakers:
Matthew Kanterman. Director of Business Development at SuperSocial.
Joseph Kim. CEO at Lila Games.
Brian Peganoff. Founder at Timber Advisors.
We’re unpacking the latest Pixels & Profits podcast on Roblox 2023. Watch the video above or read below.
So, grab your coffee, and let's dive into the present and future of Roblox!
The Big Picture: Roblox Today
A UGC Giant: Roblox, the user-generated content (UGC) behemoth, boasts over 70 million daily active users. That's a staggering figure, hinting at a user base north of 400 million. Talk about playing in the big leagues!
Engagement Galore: With over 60 billion hours of yearly engagement, each user spends about 2.5 hours daily on the platform. The numbers are growing, with bookings hitting $3.5 billion this year.
Post-Pandemic Growth: Unlike many pandemic-hit businesses, Roblox didn’t just survive; it thrived and continued growing post-COVID, questioning the norms of digital entertainment.
Is Roblox a Gaming Platform or a Social Network?
This is the million-dollar question. As Roblox evolves, it blurs the lines between a gaming platform and a social network. The company’s direction in the coming years will heavily influence its market positioning and growth trajectory.
Profitability: The Achilles Heel
Roblox faces a common challenge among tech giants - profitability. Despite impressive growth metrics, turning those into real cash flow remains a puzzle. With a focus on operational efficiency and EBITDA margin growth, they’re on a mission to crack this code.
Analytics and Transparency Concerns
A point of contention is the reliability of Roblox’s analytics. While some discrepancies in data are expected, the platform must maintain transparency, especially when investor confidence is on the line.
Financial Health: A Closer Look
2023 Bookings: Around $3.4 billion, with a 2024 consensus of $4 billion.
Valuation: The market cap hovers at about $25 billion, but questions about profitability and EBITDA remain.
Growth Opportunities and Challenges
Subscriptions and Advertising: These two are the golden tickets for Roblox. Subscriptions could revolutionize how users interact with content, while advertising might unlock new revenue streams.
E-commerce: A new frontier for Roblox, allowing real-world item sales. However, the effectiveness and impact of this move are yet to be seen.
AI and Efficiency: AI tools like real-time chat translation and content moderation could be game-changers, reducing operational costs and enhancing user experience.
The Competition: Epic Games and Meta
Let’s not forget the competitive landscape. Epic Games and Meta are significant players, each carving their unique path in the 3D social platform space. Roblox needs to stay agile and innovative to maintain its edge.
Stock-Based Compensation: A Red Flag?
Roblox’s liberal stock-based compensation has raised eyebrows. While it’s a common practice to attract talent, the lack of cash flow to counter the dilution is a concern for investors.
Acquisition Potential
There’s always a chance of acquisition, especially by giants like Microsoft. However, any acquisition would need to align with the founders’ vision and offer operational independence.
Final Thoughts
In conclusion, Roblox is at a fascinating juncture. It’s a blend of a social network and gaming platform with tremendous potential, but also faces significant challenges. Keep an eye on their AI initiatives - these could be the key to their long-term success.
That's all for today! Stay tuned for more insights and discussions on the ever-evolving world of game development. Until next time, game on! 🎮🚀