Roblox is the biggest game in the world, but is unprofitable

Original Article ↗ Hacker News Discussion ↗

Roblox’s Financials and Accounting

  • Several commenters stress Roblox is cash‑flow positive but not GAAP‑profitable due to:
    • Heavy reinvestment in R&D, infra, and growth.
    • Deferred revenue rules: most Robux spent on “durable” items is recognized over ~27 months, which depresses current reported profit.
  • Others argue stock‑based compensation (SBC) is masking “real” costs:
    • SBC has grown faster than revenue; issuing new shares dilutes investors but makes operating cash flow look better.
  • Debate over whether this is smart long‑term growth (Amazon/TCI‑style) or just financial engineering that can’t be fixed by “cutting spend” later.

Platform Economics and App Store Fees

  • A widely discussed factor: Apple/Google keep ~30% of mobile transactions.
  • Several posts estimate that after app stores and Roblox’s own cut, developers get roughly a quarter of what players spend.
  • Some argue this pushes platforms toward ad‑based models (0% app‑store tax) and “users as product.”
  • Comparisons made to Steam and console storefronts, with debate over whether 30% is fair given tooling and distribution.

Game Quality, “Jank,” and TAM

  • Many adults find Roblox games low‑quality, repetitive, and “janky,” yet acknowledge huge engagement (tens of millions of DAUs).
  • Some devs and parents say the uniform “Roblox feel” is both a downside (limits appeal to older, higher‑spend users) and an upside (consistent controls, fast iteration).
  • Jank tolerance is seen as enabling rapid experimentation and incremental improvement that would be punished on Steam.

Child Safety, Predation, and Ethics

  • Strong criticism that Roblox:
    • Monetizes children aggressively via microtransactions and dark patterns.
    • Relies on “child labor” UGC with a high platform take and payout thresholds.
    • Has serious grooming and predation problems; some link investigative reporting.
  • Counterpoint: Roblox spends heavily on Trust & Safety, but scale makes full protection hard; any large kid‑centric network has similar risks.

Parental Experiences and Controls

  • Many parents in the thread:
    • Struggle with kids’ spending pressure and peer effects; some set strict Robux budgets or ban Roblox entirely.
    • Complain age filters are leaky (violent or scary games still surface; blocked games still appear in listings).
    • Contrast Roblox’s social pull with more contained alternatives (Minecraft servers, Nintendo games, LAN/co‑op).

Comparisons to Minecraft and Others

  • Minecraft praised for:
    • Allowing independent servers/mods while avoiding Roblox‑style monetization of UGC.
    • Having split editions (Java left relatively unmonetized; Bedrock carries MTX).
  • Roblox is seen as having “solved” a decades‑old dream of UGC 3D worlds at scale, but in a way many find ethically troubling.