Improves Problem-Solving, Critical Thinking Skills, and Creativity
To advance in a game, you must be able to resort to logic, strategic-thinking, and quick problem-solving
Improves Digital Literacy and Technical Skills
Ability to arouse an interest in technology, computers, and the possibilities of the digital world
Improves Attention and Memory Capacity
Game-based learning and educational video games allow players to concentrate easily and focus in a way that is almost impossible in a traditional class environment
Develops Soft Skills
Gaming is a social activity that promotes soft skills such as communication, team collaboration, and leadership.
Fitness through Gaming
There are so many ways to work out in this day and age and that's great, but sometimes all you want to do is find a good way to work up a sweat from the comfort of your own home
Where to build on top of?
Thoughts
Fire TV Stick/ Chromecast Apple TV App?
Everybody connects their mobile device and can join a sports game?
Roblox → has an Education aspect (don’t know details): Roblox is an immersive educational tool where the opportunities for creativity and imagination are limitless. We offer free resources to teach students of all ages real coding, game design, digital civility, and entrepreneurial skills.
Roblox is an online platform in which users can create games or play games created by other people. They offer their own 3D engine with which every user can create games and publish them directly and play them with other users.
the company combines elements of social networks, toys, and 3D engines.
Lego: $7 billion valuation
Facebook: $740 billion market cap
Activision Blizzard: $61 billion market cap
Unity: $41 billion market cap
focus on user-generated content (UGC)
User Base
Available across Xbox, PC, iOS, Android, and VR headsets
Ease with which Roblox can be accessed has been critical to the consistent growth of the business.
Boasts 31.1 million daily active users (DAUs)
54%, or 16.9 million, are under 13 years old.
in 2019, 58% of users were under 13, and
in 2018, 55% fell below this line
50% of nine to 12-year-olds in the United States and Canada, New Zealand, and Australia, play either Roblox or Minecraft, which indicates how effectively the company has captured this marke
Since the user base is mainly around a very young age, winning older users should lead to a higher spending per user
Products
Roblox Client
The game as the user experiences it
Top Games:
Adopt Me! — a simulation in which users raise a virtual pet or child — occupying 23% of concurrent users (CCUs)
Royal High — A high school-themed game where players role-play fairies, mermaids, and other magical creatures
Welcome to Bloxburg! — Owing much of its DNA to The Sims, Bloxburg lets users live
Murder Mystery 2 — Based on a Garry's Mod game-mode called Murder, this Roblox favorite is similar in play to classics like Mafia and Werewolf.
Roblox Studio
The platform leverages Lua, described as a "light-weight programming language popular in the gaming industry." — Developers can use objects from the Roblox universe in their games.
Not the most performant piece of Roblox's empire. Bugs and shutdowns plagued our experiments with the software
Roblox Cloud
Set of cloud services that developers can access alongside building experiences in Studio
Offloads computing to the cloud
major benefit because 68% of engagement hours over FY20 came from users registered via the Apple App Store or Google Play Store.
Business Model/Strategy
“Free-to-play" game, upselling users as part of their interaction
Robux — the currency which is used to pay inside of Roblox
Packages available as either one-off purchases (e.g., 400 Robux/$4.99) or as subscriptions(e.g., 450 Robux/$4,99/month)
Purchases can be made in the client across platforms → Prices differ for each platform
In-game monetization is notoriously aggressive
Developers create games with the Roblox development platform
Games are made available to other users in the Roblox client
Client includes a store in which players can purchase with Robux.
Cosmetic upgrades to the user's avatar.
In-game content
Game access
Roblox offers a revenue share mechanic to game developers to redeem the Robux generated by their games for USD. Still, the economics of that revenue share arrangement are somewhat opaque and are heavily skewed in Roblox's favor.
Example
If a player were to buy 80 Robux for $0.99, their purchase price is $0.0124 per Robux. If that player were to spend those 80 Robux in a developer's game subsequently, and the developer redeemed them for $0.0035 per Robux, the developer would receive $ 0.0035 / 0.124, or 28% value of the Robux package that was purchased by the user. Reducing this amount by the 30% platform tax puts receipts to the developer at 19.7% of total revenue generated. Yikes
The unfavorable revenue split discourages sophisticated developers from investing in Roblox because the platform's terms preclude
Paid user acquisition
Given the small share of revenue received by the developer, it is likely unmanageable to profitably grow a game to a meaningful scale using Roblox's advertising tools, given that the developer bears all marketing costs
Significant upfront development costs
The more ambitious a project, the more it is likely to cost to develop. Yet, large, sophisticated studios are potentially repelled from the Roblox ecosystem relative to other ecosystems that offer better developer economics for publishing
COGS
Any variable expenses, such as IP licenses that are generally paid out as a percentage of revenue, are difficult to support given how little money the developer is taking from game revenues. This means developers that have the opportunity to work with big brands and IP licensors will publish elsewhere