Roblox, a video-game app popular amongst younger players, reported that they raised funds at a valuation of up to USD 2.4 Billion. The Company also announced that it’s on track to pay out USD 70 Million to developers this year, up from USD 30 Million last year. The platform has 64 Million monthly players and has allowed three teenage developers to become millionaires.
Roblox is hosting its Roblox Developers Conference in Burlingame, California this coming weekend and is expected to announce to 4 Million game developers that the Company is on track to pay out USD 70 Million this year. Roblox announced it was cash flow positive for the first time with hundreds of Millions in bookings in 2017.
The difference between Roblox and current trendy games like Fortnite is that Roblox is created by its userbase. It has 40 Million games that were made by young developers. Developers get a cut of the pay when the players choose to spend on the Robux premium currency. One creator made USD 3 Million in earnings while the other two claimed USD 2 Million.
Roblox has hired the former Activision executive Enrico D’Angelo to be Vice President of Product for the platform in an effort to continue building back-end tools that help developers build their games. Roblox Chief Executive Officer, David Baszucki, said, “We have an enormous vision for a new category for human interaction and, ultimately, immersive entertainment.” He also mentioned the Company’s approach to expand education, planning to open 500 coding camps and introductory classes with its platform as a tool this summer in the United States, Canada, Brazil and the United Kingdom.
For more experienced developers, Baszucki has said it has begun inviting developers to join its Silicon Valley offices for two to three months to have direct access to the people that create the platform. The Company recently also ventured into action-figures and apparel businesses to go beyond creating gameplay, but to enter “stories, avatars, and situations” according to Business Insider.