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Lanon Wee

Roblox Seeks to Increase Revenue by Allowing Sellers of 3D Virtual Goods

Subscribers of Roblox's more expensive premium plans can now create and put 3D goods up for sale on the platform's marketplace, in addition to the 2D assets they had been allowed to sell before. In the coming months, developers will be able to implement subscription-based services in their Roblox games and experiences using new coding tools. However, the company's yearly revenue growth has noticeably decreased, as it went from being over one hundred percent in some parts of 2021 to a mere 15% in the latest quarter. Roblox, the prominent gaming platform for kids, is aiming to bring in more money by providing a greater number of users the ability to craft and sell a wider variety of digital goods. On Friday, the company revealed that subscribers of the Roblox app's upper-tier plans, which offer a consulting amount of Robux digital currency, can now market their 3D assets to other gamers. Formerly, participants of Roblox were only able to make and sell 2D items like virtual clothing, and had to be chosen in the company's UGC (User Generated Content) program before doing so with 3D products.Manuel Bronstein, Chief Product Officer of Roblox, said in an interview with CNBC, “Now you have the marketplace open to everybody, and you will have the opportunity to have a lot of creation on the platform. We know that with increased creation comes more engagement and more users.”Having gone public in 2021 with a market valuation of $38 billion, investors were ecstatic about the digital universe of Roblox, comprised of people engaging with and playing games with each other, participating in a separate economy. Nevertheless, revenue growth has decelerated significantly, dropping to a 15% year-over-year in the most recent quarter, from over 100% in 2021.The stock fell 72% last year, and the market cap of Roblox has gone down to around $18 billion.Connected to its yearly developers’ convention being held in San Francisco, the firm’s most current announcement was made. The corporation principally earns money from the sales of Robux. When customers use this currency to purchase virtual objects in the games, Roblox receives 30% of the revenue, and gives it to the game developer. At the start of this year, the company initiated offering online advertisements as a way of extending its enterprise.By permitting Roblox gamers to make and sell 3D products, the company may gain more paid subscribers who are willing to pay for that feature. Even though users, who must present identification, will have to pay 750 Robux for uploading 3D apparel and accessories onto the marketplace, their unique 3D heads and bodies for digital avatars can be submitted at no cost. 30,000 Robux is charged at $105.Developers constructing custom video games on Roblox will also have access to innovative coding tools which can assist them to create interactive experiences, expected to encourage more interaction between the users, for instance, digital telephone booths where people can call their Roblox buddies.Roblox Connect, a selection of communication-oriented services, containing the new coding tools, was announced by Bronstein. He added that users will be able to make real-life phone calls to family and buddies within the platform, assuming they all have a Roblox account. Later this year, Roblox developers will have access to new coding tools allowing them to establish subscription-based services in their in-platform games and experiences. According to a company spokesperson, there will be a 30% platform fee charged for the subscriptions. These new tools will give developers a way to gain recurring revenue from their most dedicated fans who can be enticed with benefits like virtual shirts or other items on a weekly basis. Bronstein explained that these subscriptions will be customizable, allowing creators to set the specific prices and terms. Along with these subscriptions, the company is introducing a digital assistant geared to make content creation on Roblox more natural and conversational, drawing from artificial intelligence such as OpenAI's ChatGPT. Through this assistant, users will be able to give visual instructions and see results in real time while verbalizing their commands rather than relying on code. Roblox plans to make this app available to Meta Quest virtual reality headset users this month, with PlayStation console users having access to the program in October.

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