The untapped market of Roblox’s metaverse
Roblox is considered a “young tech giant” since it “appears to have the only fully-fledged metaverse product on the market,” said Bank of America on Monday.
The bank cited the robust and growing Roblox community as one of its competitive advantages. It has 50 million daily active users, 3 million creators, and more than 3,000 paid developers, among other advantages. Because of its strength and growth, the metaverse community may be able to consolidate its position as the category’s leader, which “is now like social media at its dawn,” according to the note.
“The metaverse category could eventually subsume parts of social media, streaming video and video games, so Roblox could eventually encompass more than today’s investors can conceive,” as explained by BofA.
The advertising revenue and e-commerce potential of Roblox could take it to newer heights.
How will its growing community be of help?
In the end, Roblox’s growing community and vertically integrated coding language might help the company’s sales growth speed ahead of Wall Street expectations since it supports a faster than planned product delivery cycle, according to the Bank of America.
Roblox has complete control over its whole technology stack, from coding languages to graphics software to computation. It also owns high-performance data centers and content delivery networks (CDNs) in several places worldwide. Roblox’s ownership of big-scale computation is noteworthy since it provides a degree of flexibility in its pursuit of system performance leadership.
Its paradigm shift towards “experience” over “games.”
Changing to a metaverse model has been a major factor in the company’s success – even before the phrase became a talk of the town.
The platform has recently investigated the possibility of putting its online surroundings to other applications.
- Last week, the National Football League (NFL) created a virtual store in Roblox.
- Nikeland, a Roblox area where users can play games, check out items, and socialize, was created in November by the athletic apparel company.
- Additionally, the platform has been utilized to hold concerts and deliver classes to students. One of Lil Nas X’s shows on Roblox received more than 30 million viewers.
The expansion of the company’s non-game businesses may protect from the fallout from the Apple vs. Epic Games trial. Epic Games has pointed out that Apple does not allow other game stores to operate but has allowed Roblox to offer an ever-expanding selection of free games. In its app, Roblox has replaced the word “games” with the phrase “experiences.” During an antitrust inquiry, the Department of Justice looks into how Apple treats third-party gaming applications.