One obvious way to counteract the always-increasing cost of marketing in search of new users is to keep and cultivate the ones you have. But that initial momentum has subsided and the costs of marketing have gone up, almost to the point of emulating the 50/50 split between development and marketing we saw in the conventional product-based business. Initially marketing was a breeze: people were eagerly looking for new things to do and play on their brand new devices. Second, it improves the economics of marketing.ĭigitalization has brought a lot of new players to the market. The sheer volume means that user-generated content will soon be commonplace and central to the way we think about online and digital experiences. ”Ĭreative firms will increasingly rely on their users to provide the content that keeps their games popular. There’s just no way as a professional development house to keep up with our players. “But if you look at one of our biggest UGC sites, they’ve created 39,000 pieces in that same period of time. First, the benefits of crowd-sourcing content creation are significant.ĭuring a recent panel hosted by Protocol Gaming, Electronic Arts’ senior vice president Samantha Ryan stated that one of Electronic Arts’ studios, Maxis, generated around 5,000 pieces of individual clothing for The Sims over the past five years. What characterizes Roblox’ success today is the gradual ascension to become a breakout hit.īut it is taking the idea to the bank in at least two ways. Year-over-year revenue in 2019 had grown +56% to $488 million from 2018, and for the nine months ending Septemit grew to $587 million, up +68% from $349 million the year before. But Covid-19 served merely as an accelerant rather than a trigger because Roblox ’ user base and their activity had been gaining momentum prior to 2020. To someone unfamiliar with the industry it may seem to be simply a case of a global pandemic turbocharging a novelty. “About three quarters of American children ages 9 to 12 are now on the platform,” By comparison, according to its court documents from its case against Apple, Fortnite has 350 million registered users and 25 million DAUs. According to its filing, there are 31.1 million daily active users (DAUs) playing Roblox. Started in 2004, it only gradually grew into what it is today. It is an overnight success has been 16 years in the making.
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