RDC 2024: Roblox’s Next Frontier

• At RDC, we are sharing the next stepping stone on our path to 1 billion daily active users: We believe 10% of all gaming content revenue will flow through the Roblox ecosystem and be distributed within our community of creators.

• We are also announcing Party, which will let friends more easily play their favorite games together.

• We are sharing a new incubation project to develop a Roblox-created 3D foundational model to power generative AI creation on the platform.

• We’re announcing new opportunities for creators to earn, including commerce, which enables creators to sell their physical merchandise within experiences by integrating with e-commerce partners, our first being Shopify; a higher developer revenue share for paid access experiences¹; and a Creator Affiliate Program that rewards creators for bringing new users to the platform.

Today, we kicked off our 10th annual Roblox Developers Conference (RDC) in San Jose, California, where we gathered with thousands of the developers, 3D artists, brands, and influencers who make up the global Roblox creative community. They’ll be connecting and learning about new features and products that are going to help us reach our ambitious goals for the future.

The Roblox community is playing, building, communicating, and connecting more than ever, as evidenced by the 79.5 million daily active users (as of June 30, 2024) from around the world coming to our platform. In the second quarter of 2024, daily active users grew by double digits in each of the regions where Roblox is available — and more than 20% in the U.S. and Canada; Asia; and Rest of World. Of the 79.5 million users who come to Roblox daily, 58% are aged 13 or older. That age group saw 26% growth year over year in the second quarter of 2024.

When Erik Cassel and I founded Roblox in 2006, we were motivated by a question that still drives the company today: How do humans connect through play? We’re optimistic that the technology we’re building will play a part in improving human connection. The engaging experiences that make up the Roblox ecosystem bring people together. That has always been our goal. To get there, we will continue to focus on the four core growth vectors we set out at our direct listing in 2021: expanding around the world; making Roblox compelling for everyone; ensuring a broad range of use cases; and growing and improving our economy.

10% of Global Gaming Content Revenue by Roblox Creators

Worldwide, the gaming market is huge: 3.4 billion people play games, and the gaming industry generates more than $180 billion in annual revenue². As our next stepping stone on our way to 1 billion daily active users, we are sharing an ambitious goal: We believe that 10% of all gaming content revenue worldwide will flow through the Roblox ecosystem and be distributed within our Roblox community.

On our way to 10% of gaming content revenue, we believe we will reach approximately 300 million daily active users. We believe that about 80% of those people will come to Roblox to play together, with the rest coming to shop, consume entertainment, learn, or simply communicate with one another. To reach this goal, we are focusing on three key areas: Helping creators 1) bring people together, 2) scale their creations and audience, and 3) build their businesses.

1. Bringing People Together

Bringing people together is where we started our journey. People play on Roblox every day in ways that are impossible elsewhere — and we’re making that even easier. We’re introducing Party, which will enable friends aged 9 or older to seamlessly group up, discover, and join their favorite experiences together. Party will also let friend groups communicate via text and (for phone-verified users aged 13 or older) voice, both within and outside of Roblox experiences. We plan to launch Party first with text and then with voice. We expect both to be available by the end of the year. Early next year, we’ll add an API that will allow developers to expand the Party experience. Developers will be able to teleport Party members to the same starting point, drop them into a private lobby, or pre-pair them into a team.

We also want to help developers connect with their communities and make it possible for them to manage their communities from one place. To this end, we’re sharing that Roblox Groups is being rebranded as Roblox Communities. Communities will continue to grow with tools such as Forums, which are dedicated spaces for people to share feedback on experiences, discuss gameplay, and report issues. Experiences that have large communities, like Blox Fruits, are preparing to try out this new tool.

Over the past year, we’ve expanded our vision for search and discovery to surface, in a fair way, more diverse content on our homepage, making it easier for people to find their next favorite experience. We’ve also begun to augment our algorithms with Today’s Picks (on the homepage and on Marketplace). And finally, we’ve increased the impressions available for sponsored ads on our homepage to more than 8% (as of June 30, 2024), up from 1.6% for the quarter that ended March 2024.

To help our creators understand how discovery works, we’re sharing our commitment to open and transparent insight into search and discovery on Roblox. We’ll be open with our algorithm — what we value and how we reward attributes that drive distribution. We will also provide visibility into how developers’ experiences are performing against these attributes. We are already seeing results from these changes: More experiences are breaking into the top 100. In the second quarter of 2024, there were 25 experiences on Roblox with more than 1 million daily active users.

As we think about search and discovery, we’re also thinking about how new people find new content off platform. To support this, we’re also announcing a Creator Affiliate Program that rewards developers for new users that they bring to Roblox. Creators will be able to set up unique links for their experiences, and if someone uses that link to sign up and purchase Robux, the creator will earn a share of the revenue that person generates from their Robux purchases — anywhere on the platform — for the first six months. We’ll test this program with a few creators shortly, enabling them to earn up to 50% on qualified purchases. We will begin accepting applications for the first version today, and we expect it to be available to all eligible creators by mid-2025.

Another piece of our vision for connection on Roblox is that we become a destination for organic and immersive music discovery. Today, creators can make experiences richer by including high-quality music, and people will soon be able to discover new music, interact with immersive audio experiences, and connect with artists. Artists will have a powerful new way to expand their reach, cultivate fandoms, and build communities on Roblox.

We’ll do this with new platform-level features like What’s Playing and Music Charts, where people can find popular and trending experiences or songs from breakout artists across the Roblox community, and artists will get an opportunity to build fandom and connect with Roblox’s global audience. We’re also rolling out an integration with music distribution service DistroKid to offer eligible artists a straightforward and official way to upload and share their music on Roblox. This integration gives creators the ability to use the tens of thousands of songs provided by DistroKid to expand their experience alongside the opportunity for music discovery within the community. By the end of this year, we expect to see a catalog of music on Roblox that spans genres, like electronic, pop, dance, rock, country, rap, and hip-hop.

2. Scaling Creation and Access

As we bring people together, we are focused on providing the technology to support scale — for performance, creation, and safety. We have already hit some incredible milestones here, including a record number of concurrent users, entirely powered by our infrastructure. We’re driving performance and quality improvements throughout our technical stack, and we consider performance to be one of our biggest growth drivers. This year, we’ve improved app launch time, increased streaming adoption — which speeds up join times — and reduced crashes. We estimate that the improvements we made on Windows earlier this year have eliminated more than 300,000 crashes each day.

We’ve also focused on frame rate. For experiences with lower frames per second (FPS) on 2-3 GB Android devices, we’ve improved average FPS by 24%. We've done this via gains from our platform technology and from the use of our analytics dashboard by creators to tune and improve performance. By our estimate, we are on track to add more than 300 million hours per year of playtime due to these performance improvements.

We are also sharing a hint about where we’re focusing our platform efforts. We’re going to make it possible for a developer to host a high-performance, 100-player open world, sports or battle royale–type game on Roblox and have it run on 2 GB RAM devices anywhere in the world at good frame rates. We won’t stop until this is possible.

To support these ongoing performance efforts, today we are sharing an early peek at our novel technology, Harmony, which optimizes all aspects of engine streaming on both client and server. This will include client-side balancing and optimizations of CPU, GPU, RAM, and bandwidth to ensure that every person has the best experience possible across devices. And, yes, we are also looking into a Roblox-supported architecture for server authority for competitive games.

We also want to make it easier to create great content at scale. We’ve been building AI into Roblox for years with tools like Assistant, Texture Generator, and Avatar Auto Setup. But these only scratch the surface of what we have planned.

Today, we’re sharing some early demonstrations from an incubation project we launched a few months ago with a team of researchers and engineers. This internal AI project will power generative creation on our platform. Our 3D foundational model will be open source and multimodal, and it will power 3D generation through text, video, and 3D prompts. We see a powerful future where Roblox experiences will have extensive generative AI capabilities to power real-time creation integrated with gameplay. We’ll provide these capabilities in a resource-efficient way, so we can make them available to everyone on the platform.

As our developers’ content makes up more of the global gaming market, our commitment to safety and civility on Roblox will not change. We provide a powerful global safety system that is both increasingly accurate and cost-efficient — which lets our creator community focus on building.

Our goal has always been to make Roblox the safest place for people to connect. This year, we also released Ban API and Alt Account detection tools, which makes it easier for developers to remove policy violators from their experiences and prevent them from rejoining. As these experiences grow, our vision is that our developers will be able to participate in running their own communities as they see fit.

3. Helping Creators Build Their Businesses

As our share of the global gaming market grows, so does the virtual economy that has powered the creation of nearly 18,000 full-time job equivalents in the U.S. over the past seven years³. Our formula to reward our creators is working, and we’ve taken steps to make it more efficient.

In the coming months, we will begin offering a new solution to help developers optimize in-experience pricing. Price Optimization, a recommendation tool, runs price tests to identify the most attractive pricing strategy. We expect this tool will help creators thrive. As a fast follow, we plan to experiment with including regional pricing recommendations. Optimizing pricing by region will enable developers to set prices tailored to local markets and users to see pricing that’s more reflective of their local economy.

This year, brands such as e.l.f. Cosmetics, Fandango, Walmart, and Warner Bros. started testing commerce on Roblox. People aged 13 or older discovered clothing and beauty products within experiences — and with a few simple clicks, these physical items showed up on their doorsteps. Some people even bought movie tickets for the Beetlejuice sequel that comes out today, via a virtual Fandango box office in the [Beetlejuice] Escape the Afterlife experience from Warner Bros.

Early next year, we’ll enable eligible creators to sell physical merchandise directly from within their experiences. We plan to integrate with various e-commerce platforms, and are excited to announce our first partnership with Shopify. This means that creators who sell physical goods with Shopify will be able to sell those same products in a Roblox experience. We’ll pilot this solution later this year with a handful of creators, brands, and e-commerce partners.

We are announcing new economics, where developers will be able to price their paid access experiences for purchase in real currency value¹ on desktop and earn a higher revenue share. Experiences selling at $9.99¹, $29.99¹, $49.99¹ will receive 50%, 60%, and 70% revenue share, respectively. We’ll roll this out for people to purchase on desktop this year, with plans to later expand to other supported devices.

As we look to the year ahead, we couldn’t be more excited about the new products and features that are coming and the opportunities they’ll create for connection and play on Roblox. We’re also excited to see how they’ll turbocharge more diverse content from our creators. We can’t wait to build it with you.