Roblox Is Forever As Metaverse Fades Into The Sunset

Roblox, the online multiplayer gaming platform that allows players to create their own games and socialize with friends, reported mixed results for the first quarter of 2023. However, it also boasted a new record number of daily active users, reaching an all-time high of 66.1 million. Despite waning mainstream interest in the “metaverse” over the past year, Roblox’s growth continues to surge.

In the first quarter of 2023, Roblox’s revenue and DAU count both rose by 22% compared to the same period in the previous year, with quarterly revenue hitting $655.3 million. Additionally, total hours spent in the game increased by 23% year-over-year, and the company saw a 23% rise in “bookings,” which are purchases of Roblox’s in-game virtual currency, Robux.

While Roblox’s stock rose over 7% today to nearly $39 following the earnings report, the company still reported a net loss of $268.3 million. According to Reuters, Roblox’s losses were due to “developer exchange fees, personnel costs, and infrastructure.”

Roblox CEO David Baszucki described the company’s Q1 performance as “strong” and stated that Roblox’s mission is to be a “technology platform” that enables creators. Baszucki also noted that the momentum in the business demonstrates the success of their creator community as they bring their visions to life on Roblox, attracting an ever-growing global user base that spans all ages.

Some consider Roblox a “proto-metaverse” as it delivers a taste of the kind of expansive, cross-platform, interactive future that some creators and companies believe is the future. However, it is a closed “Web2” ecosystem, and the digital items and virtual currency in Roblox cannot be carried onto other video game platforms.

Many Web3 builders advocate for creating an “open metaverse” that will allow players to truly own their items as NFTs, which can be used across games and platforms and sold as desired. Recently, Roblox began dabbling with scarce digital items that act like blockchain-based NFTs: they are limited in number and can be resold to other users, with a share of the resale price sent back to the original creator. However, like the non-scarce items in the game, they remain locked to the Roblox platform.

While the report shows Roblox’s impressive growth, it also highlights the challenges that come with creating a closed ecosystem. The inability to carry digital items and virtual currency across other video game platforms restricts users, which is why many believe an open metaverse that allows players to truly own their items is the future. Despite this, Roblox’s success shows that there is still a lot of potential in closed ecosystems like theirs, and that they can still thrive in the right circumstances.

As Roblox continues to grow, the platform is also taking steps to ensure its security, such as implementing measures to protect user accounts from hacking and scams. It’s important for platforms like Roblox to prioritize security to prevent fraudulent activities and protect its users, especially as the platform grows in popularity and value.