Ignacio Castaño🍉Uh, is that accurate?
https://bird.makeup/users/ballmatthew/statuses/1823333922626814017
https://bird.makeup/users/ballmatthew/statuses/1823333922626814017
Arseny Kapoulkine@castano @ballmatthew The “losses” are accounting BS due to revenue deferral. But otherwise yeah creator cut and app store fees are similar in magnitude, see pie chart on https://create.roblox.com/docs/production/earning-on-roblox
Krzysztof Narkowicz@zeux @castano Matthew just posted the full piece on Roblox and he has a good explanation why losses are real. Interesting perspective how thin are the margins compared to more traditional FAANG: https://www.matthewball.co/all/roblox2024
Roblox is Already the Biggest Game In The World. Why Can't It Make a Profit (And How Can It)? — MatthewBall.co
With 380MM MAUs, Roblox probably counts more players than the entire AAA gaming ecosystem, is more played than Disney+ is watched, and is starting to rival smaller social networks in scale. But Roblox has yet to profit. How can it become a business comparable to its operating scale?
@k_narkowicz @castano I’m not sure how much I should comment on this but my (naive) understanding doesn’t align with a few points he has. It’s very possible he is right but it would be nice to see a more substantiated analysis. But yes, it’s drastically different from a typical FAANG company. Although some of them compensate with a few tens of billions in ai capex now ;)
@k_narkowicz @castano (Just to be clear parts of this analysis are solid, just not everything checks out for me so I am not sure to what extent the conclusion is right.)