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> Unlike other social platforms, Roblox’s revenue is nearly all via user spending rather than advertising. As such, Roblox pays 25% of its revenue to Apple and Google (30% of transactions on those platforms) whereas Facebook, Snap, et al pay effectively 0. Note that Facebook, which has structurally lower costs to service users than Roblox and is far more mature, has an operating margin of roughly 40% — if the company…
The bigger question about Roblox is how and why they got their special treatment from Apple. The whole concept of Roblox is in blatant violation of Apple's App Store policies. I believe they are significantly shielded from competition because who else can get that kind of ongoing and reliable relief from Apple's famously picky and capricious App Store reviewers? Maybe Roblox is happy to pay Apple their 30% in exchang…
If you want any part of any government to investigate, shouldn't you suggest some agency that's supposed to be working for consumer welfare or so?
> Unlike other social platforms, Roblox’s revenue is nearly all via user spending rather than advertising. As such, Roblox pays 25% of its revenue to Apple and Google (30% of transactions on those platforms) whereas Facebook, Snap, et al pay effectively 0. Note that Facebook, which has structurally lower costs to service users than Roblox and is far more mature, has an operating margin of roughly 40% — if the company…
Well, the app stores could fix that by also demanding a cut from ad revenue.
> Unlike other social platforms, Roblox’s revenue is nearly all via user spending rather than advertising. As such, Roblox pays 25% of its revenue to Apple and Google (30% of transactions on those platforms) whereas Facebook, Snap, et al pay effectively 0. Note that Facebook, which has structurally lower costs to service users than Roblox and is far more mature, has an operating margin of roughly 40% — if the company…
Well, the app stores could fix that by also demanding a cut from ad revenue.
In any case I suspect that is too much overreach and would only attract more attention from regulators.
Two wrongs don't make a right, and this is fixing the wrong problem. (The problem being that once I purchase a portable pocket computer, I want it to be mine to use how I want with whatever software I want without asking the manufacturer for permission).
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Sorry but I'm an accountant and I can't abide such a terrible and incorrect description of how this works. Dunning Kruger in full effect on HN today.
I came in to say exactly the same thing. What OP is saying is literally a lie, accounting is much more sophisticated than that.
You also have not managed any explanation at all, which is a shame. Could be interesting.
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Well, the app stores could fix that by also demanding a cut from ad revenue.
Haha, I am imagining the Facebook response to this! :) In any case I suspect that is too much overreach and would only attract more attention from regulators. Two wrongs don't make a right, and this is fixing the wrong problem. (The problem being that once I purchase a portable pocket computer, I want it to be mine to use how I want with whatever software I want without asking the manufacturer for permission).
> Unlike other social platforms, Roblox’s revenue is nearly all via user spending rather than advertising. As such, Roblox pays 25% of its revenue to Apple and Google (30% of transactions on those platforms) whereas Facebook, Snap, et al pay effectively 0. Note that Facebook, which has structurally lower costs to service users than Roblox and is far more mature, has an operating margin of roughly 40% — if the company…
Get money from your users: 25% platform tax
Get money from advertisers: No platform tax
Where is the money coming from if they are not profitable?
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Any game has an inherently limited and temporary TAM, unless you can license the engine to other companies.
What’s TAM?
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Any game has an inherently limited and temporary TAM, unless you can license the engine to other companies.
Why is that true of games but not other businesses?
There are a handful of counterexamples like Madden NFL but only very few.