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by Retric 101 days ago
> making for a near industry-standard 33% cut.

LIES, from that link:

“On average, 67% of all spending in experiences supports OR goes to developers.” Supports here does not actually mean they get paid that money.

Later it mentions the actual money going to developers as: “This enables us to return 28%* directly to the developers.” And yes that 28% includes an asterisk.

That’s a 72% cut to the platform.

2 comments

You're missing the parts where:

1: Roblox hosts your multiplayer gameservers in its pops for free, with a generous amount of free persistent storage and memory

1.a: Roblox handles scaling and SRE work for you for free - you're not going to be able to support millions of concurrent users yourself at that price point

2: when people buy robux on their phone the app store takes 20-30% of the dollar - but the player still gets 1 robux for each penny.

2.a: your game immediately is playable on iOS, android, PC, Mac, Xbox, PlayStation, questvr, etc etc - no fees for you to get this distribution.

3: Roblox pays out creator rewards - a redistribution of revenue - to experiences that reengage dormant users or are played by paying users even if your game itself has no purchasable items.

Roblox's economic model has a redistributive nature that isn't common in other economies. If you're just looking at the devex rate and not building on the platform you wouldn't immediately appreciate it.

None of what you said counters anything in my post.

> Roblox hosts your multiplayer gameservers in its pops for free > free > no fees

A middleman that takes a huge cut isn’t doing anything for free. Can you at least try and have an honest discussion here.

Hosting, storage, and scaling aren’t free; costs scale with active users, data egress, and state. In-app purchase splits and platform fees erode margin, so “free hosting” rarely survives at millions of concurrent players. Model revenue net of ops costs and, if needed, use a hybrid backend with careful risk budgeting, auth, and anti-cheat.
72% cut's still pretty steep for all that. Like, these aren't large corporations Roblox is working with, it's kids. It's their platform, and they get to charge whatever they want, and kids can choose not to use it, but 72% still seems exploitative to me. Not a parent tho.
Post-appstore cut it's 42%, which is high but doesn't seem crazy. The unsuccessful attempts and idle piddling all need to be subsidized to allow the successes to exist in the first place, and I suspect we all know better than to undercount cloud, hosting, SRE, and staffing costs. They're all ongoing and pretty painful, and getting a shot at creating something with effectively zero downside risk (vs making a game in Godot and building/buying all of the other parts yourself or with staff) will always come with a lower upside.
> Post-appstore cut it's 42%

That’s ~60% of the post AppStore cut or 42% of the total. If they took 42% of what remained developers would be getting more money than them.

Further there’s no App Store cut when people buy this stuff on PC. The platform is ridiculously exploitive.

> Further there’s no App Store cut when people buy this stuff on PC.

Plenty of PC Roblox users use a version of Roblox downloaded through the Microsoft Store, whom charge a 12% cut on all money spent on gaming apps <https://learn.microsoft.com/en-us/windows/apps/publish/publi...>. The only place where no app store cut applies is when purchasing Roblox products through the non-Microsoft Store PC app or through the website. Surprise, doing this gets the user ~20% more Robux than buying through an app store <https://www.roblox.com/upgrades/robux>.

If a user buys Robux through a platform where the app store fee isn't charged, then it isn't charged to developers either because the user will receive, and thus spend, more Robux. Creator rewards work differently to ensure that developers owning experiences played primarily by app store users aren't unfairly punished by this <https://create.roblox.com/docs/creator-rewards>.

> whom charge a 12% cut on all money spent on gaming apps

How ridiculous, why that’s almost as high as what Roblox does below.

> ~20% more Robux than buying through an app store

1 / 0.7 = 43% more money.

Which might not be such a big deal except it clearly show the kind of Hollywood accounting going on in their other posts.

I suppose it could be considered steep for anyone making a multiplayer game while managing the hosting for themselves on a tight budget. Developers with strong knowledge of monetisation strategies can make good revenue streams from games with self-hosted or self-managed servers. Maybe these developers wouldn't be able to get the same amount of revenue if they used Roblox instead.

What Roblox provides is a platform to upload experiences to with minimal risk or skill required, and services that are heavily subsidised by money redirected from their most successful experiences. The barrier to entry is lowered to the floor, and most kids using the platform to learn game development wouldn't have otherwise learned about it if they had to manage servers, study networking, etc.

Cloud services are a thing, but they're usually expensive and Roblox is paying for them for you. Free cloud services are a thing, but they're usually very limited and what Roblox is providing is essentially unlimited.

For me, the killer app for Roblox is none of this. It's Creator Rewards <https://create.roblox.com/docs/creator-rewards> (previously Engagement-based Payouts (previously Premium Payouts)), a programme where any player that pays for a Roblox Premium subscription (or is a new/returning user and buys anything on Roblox in the future) results in money earned for the developers of the experiences they play. This happens without requiring any monetisation strategy, microtransactions, or paid in-game products to be created by the developer. Nothing similar is provided by most other popular game engines or platforms.

For myself as a smaller Roblox creator with no interest in creating such monetisation strategies on my own experiences, Creator Rewards makes up a much bigger income proportion than it does for most large developers on the platform. Instead of ~10%, it's more like 90% for me, and I suspect that most kids learning to code games on Roblox without having good marketing skills are in the same bucket, and so the cut won't be nearly as steep for them.

> Supports here does not actually mean they get paid that money.

What 'supports' here does mean is that the difference between what Roblox takes as their share to pay their own expenses and what is paid out as profit directly to the developer via DevEx or Creator Rewards, namely incoming app-store & payment fees (paid when Robux goes into the platform, mainly from purchase of Robux or Roblox Premium, in the case of Roblox Premium then Creator Rewards also should be accounted for) and platform hosting & support costs would, on a platform that pays a revenue share instead of a profit share, have to be paid by the developer instead of by Roblox. It's true that developers never receive this money for themselves. However, it would be the same if they developed their experience outside of Roblox – this money to pay for their operating expenditure would come out of whatever revenue share they earn before it becomes profit. I personally feel it's disingenuous to attribute these costs that Roblox pays on behalf of the developer to profiteering or that the money goes towards their own investment. The share that is taken by Roblox for these purposes, and by consequence not directly to developers or support of their experiences, really is 33%.

I'm taking greater pains here to clearly differentiate between the profit-share model used by Roblox and the revenue-share model used by most other platforms in the industry because of the unique way the Roblox platform operates. This is one of the most widely misunderstood aspects of the entire platform, and Roblox also makes this clear on the same page:

> If you develop outside of Roblox, you may have to pay for hosting, servers, moderation, and customer service on your own. You also have to dedicate time to managing these services; on Roblox you can focus on building your experience.

The tradeoff here is not Roblox taking a draconian cut to suck developers into their walled garden so they can have access to Roblox's exclusive platform and market. They're just paying for what the developer would have had to pay if the same experience was on a platform that didn't provide the same services or was selfhosted. This is, in essence, the same normalised tradeoff that most large technology companies make today through cloud services. This makes a lot of sense given that Roblox is using the cloud (primarily AWS) to provide some of these services.

Roblox is extremely clear and accurate about what these costs are and what tradeoffs the developer is making by using the platform, and that the developer is accepting a profit share rather than a revenue share.

The ONLY exception – the sole, singular exception to the 'profit share' rule that applies across the entire platform – is for experiences that surpass Roblox's default service limits (these default limits are never hit for 99.9999% of experiences). This is 30-50 experiences <https://devforum.roblox.com/t/announcing-roblox-extended-ser...> across the entire platform (for context on this number, >200 experiences have reached 1 billion visits), almost all built by huge teams. These experiences need to apply for Roblox's Extended Services solution <https://create.roblox.com/docs/en-us/cloud-services/extended...>, and pay extra based on the quantity of services they use. This is done so Roblox can heavily subsidise smaller experiences on the platform and give them each a better chance at success. It's the kind of thing people advocate for in real societies and I'm glad it exists on Roblox.

> And yes that 28% includes an asterisk.

The asterisk here is that this is the minimum possible profit share – the cost for both Roblox and developers is higher if the money is taken outside of the platform because of the various taxes, currency exchange fees, and transfer fees that need to be paid by Roblox (or by their payment processor, Tipalti) before the profit ever gets given to the developer. These are detailed at <https://en.help.roblox.com/hc/en-us/articles/27985018895124>.