Roblox, a popular online game platform, has seen net losses for the second quarter of 2021. The company is struggling with toxic player-generated content and their inability to keep up with new user demand.
Roblox is a free-to-play online multiplayer game. It was first released in 2006 and has since seen its fair share of success, as well as controversy. Read more in detail here: what is roblox.
Today we’ve got a lot of Roblox news for you. Then there’s the investor report for Q2 2021. Readers will recall that in Q1, the game’s creators had just gone public and were releasing their maiden financial report, which was eye-opening, with gross sales of $387 million but net losses of $134.2 million. The business had a net loss of $140 million this quarter, despite total sales of $454.1 million. That’s worrisome, yet the business is once again announcing to shareholders that engagement and daily active users are at an all-time high, prompting analysts to raise their price targets for the stock.
Second, the firm has purchased Guilded, a chat startup we previously reported that received $7 million in funding in 2020.
Finally, we reach the “this is why we can’t have pleasant things” section of our report, as The Verge has an article up on how Roblox users are using the game to recreate horrific murder events, like the Christchurch massacre in 2019. Roblox claims to have zero tolerance for such maps, but an Anti-Defamation League researcher continues discovering instances that have gotten past the moderation process.
I swear to God, I’d want to discover a fresh reconstruction of the 2019 Christchurch mosque shooting on a gaming platform targeted for very young children when I search for “Christchurch” on Roblox. https://t.co/SovJq00knY pic.twitter.com/0BvRtGYZHE
August 13, 2021 — Daniel Kelley (@danieljkelley)