Roblox Corp (NYSE:RBLX) is a fresh name that recently hit the markets. Their business revolves heavily around user generated content in the form of kid friendly online environments. Individuals make use of an extensive but relatively easy-to-learn programming language called Lua to create their own online games and virtual spaces; with the current emphasis on teaching kids the fundamentals of science, technology, engineering and math (STEM) earlier than ever, Roblox has made a real impact in furthering this learning and capturing the minds of parents, children, and educators alike.
Always on Trend
The beauty of the Roblox platform is that all its’ games are user generated. This means that the users are the ones keeping up with what is trendy and what games people would like to play. For example, during Superbowl season, some of the top games on the platform were American football themed, right on trend. This content model really solidifies Roblox in the gaming world and allows it to stay relevant through time. Roblox users, who generate games, are also incentivized to find individuals to play their games through a revenue sharing model with the platform. Their games might sell digital items, special perks, etc.; which users can buy with virtual Roblox currency; they buy this currency directly from the company. Later, the game creator receives part of this revenue.
The Educational Opportunity
Roblox is a place where individuals can not only learn how to successfully run and market a mock small enterprise, it also teaches them the programming behind how to create something from scratch. “Coding for kids” has become a very popular search term over the years as a new generation of parents realize that the world is shifting towards digital everything. STEM education and knowing how to speak and communicate with computers is becoming more important than ever.
Furthermore, the platform, which also acts as a social media network as an extension, allows users to sell their own digitally designed items. An aspiring fashion designer can create their own line of virtual outfits to sell on the Roblox platform. Through this they would also participate in revenue sharing with the company when users purchase their items.
Lastly, Roblox is also taking steps to position itself as a tool that can be used in the classroom. A special version of the Roblox platform, with more emphasis on game programming technique and the exclusion of the social media portion, has made strides in classrooms. Roblox’s unique way of letting students visualize what they are coding, in real-time, is a strong educational tool.
The Final Verdict
Roblox acts as an all-in-one educational tool for a large variety of industries, fields, and topics. It is a popular place for kids and young adults to build their own pseudo business and plan it from scratch. They learn everything from programming, to design, to marketing and small enterprise management. Although historically games have had a bad rep with parents for “rotting kids’ brains”, the new generation of STEM themed games have sparked an interest in parents’ minds for being very beneficial for their modern kids’ development.