Get Ready to See Paid Video Games on Roblox
Movieguide® Contributor
Roblox is making a big change to have paid video games on its platform.
“Roblox will roll out paid videogames on its platform and allow developers to sell physical merchandise through their created games, the company said on Friday,” USA Today reported Sept. 6. “The video gaming company will add the ability to price certain games, or what it calls experiences, in real currency for desktops, it said at its developers conference. Roblox will support a higher revenue share for the creators of up to 70%, but it will vary with the price of the game.”
The company said paid experiences will launch on PCs later in the year, while all other devices will get the same update at a later date.
The Verge reported, “The move could help incentivize the creation of more premium games as Roblox looks to attract older users. [CEO David Baszucki] says the intention is to also bring these new economics to paid experiences bought on other devices, including mobile phones and consoles, though app store fees will likely get in the way on iOS and Android. He declined to share specifics.”
Roblox has been successful with its free-to-play system with optional purchasable currency, “Robux.” But Roblox operates on a very different model than most video games. It uses user-generated ideas to grow its business and rewards creators who make popular games. The company claims it paid over $800m to creators over the last 12 months.
Movieguide® reported how this model can be seen as child exploitation when the creators are minors:
Eurogamer released a watchdog report on the game earlier this month, warning that the platform exploits child labor by taking a cut of the profit on games created by minors. While it is reasonable for the platform to collect a fee for hosting the game, the problem comes from the high percentage cut that it takes.
“The accusation then involved the system of paying developers a fraction of their in-game earnings via Roblox’s in-game currency, Robux, and Roblox also selling those Robux at a much higher price than it buys them,” the Eurogamer reported. “This largely remains the same today, with 1000 Robux currently cashing out at $3.50, while buying 1000 Robux costs the equivalent of around $12.50.”
This $9 difference amounts to Roblox keeping over 70% of the profit while dishing out less than 30%, despite the players putting in the effort to create the games. This discrepancy is especially worrying for young creators who may not realize that the cut they are receiving is absurdly low.
Now, Roblox will change the way it pays some of its creators.
“The company said on Friday that some game developers on the platform will be able to charge users real money rather than relying on payments through Roblox’s digital currency called Robux,” CNBC reported Sept. 6. “The change applies only to so-called Paid Access games, or those that cost money to play.”
“By offering our new revenue shares for paid access experiences, we’re giving our existing creators another way to earn on Roblox,” said Enrico D’Angelo, vice president of economy at Roblox.
The company has also joined hands with Shopify to let creators sell physical merch from their games. The concept will roll out next year.
Roblox “has tieups with brands such as Walmart and Elf Beauty to launch stores within its platform through which players can directly buy real products,” USA Today reported. “Roblox’s efforts to expand monetization avenues could help it navigate a challenging time for the gaming industry where an uncertain macro economy weighs on discretionary budgets and gamers stick to proven titles.”
