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Roblox is minting teen millionaires

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Re: Roblox is minting teen millionaires

#41
post #8

This is so far out of the realm of what I do with computers that I'm not even really sure what Roblox is. I guess sort of a virtual game world? Seems crazy that there's so much money in it.

In very simple terms, Roblox is an MMO based exclusively around user generated contents (games, items, assets...), including its own virtual currency, microtransactions, marketplaces and convertibility to/from real money. Roblox as a company takes pretty hefty cut from all transactions. There has been a silent shift in the gaming market over a long time now. Roblox is one aspect of it. Another is the absolutely massi…

Hasnt this 'casual' games market always existed? Once upon a time Zynga/Candycrush was a behemoth on the back of facebook embedded games.

Re: Roblox is minting teen millionaires

#44
post #34

"In the next 10 years, Colley’s goal is to earn enough to go back to making Roblox games as a hobby." Kid is making $400k PER MONTH...and he wants to do this for 10 YEARS before he is comfortable retiring. Apparently his FIRE number is $40M. Everyone's threshold is different and personal. But I think it can reflect a level of anxiety about the cost of living. You aren't OK having $1M or even $10M - you need something…

> Apparently his FIRE number is $40M > it can reflect a level of anxiety about the cost of living I think a lot of people (especially young) just haven't done the actual math. Or have lifestyle desires beyond basic not-working. You can FIRE living in SF for $4M. This gives you $160,000/year basically in perpetuity. If you do it right, there's little to no income tax on that money so 160k should be plenty enough for a…

well you certainly could get the lambo, it would just be 10% of your net worth, which is already far less (ratio) than what most Americans pay for their car...

Re: Roblox is minting teen millionaires

#45

"In the next 10 years, Colley’s goal is to earn enough to go back to making Roblox games as a hobby." Kid is making $400k PER MONTH...and he wants to do this for 10 YEARS before he is comfortable retiring. Apparently his FIRE number is $40M. Everyone's threshold is different and personal. But I think it can reflect a level of anxiety about the cost of living. You aren't OK having $1M or even $10M - you need something…

Someone thinking they need 40M to escape the "anxiety about the cost of living" is not just a personal decision. It is either extreme greed or delusional. He makes money doing Roblox he is the "laptop class". If you make 400k per month and can't afford to live something is wrong with you. Let's not conflate parents struggling to support their families with whatever this kid is doing.

For reference a worth of $40M puts you well within the top fraction of one percent of all Americans, nevermind the world. If anything given his age it is probably more likely his wealth will become a liability for him rather than an asset. The trope about people who come into that much wealth that young and it creates problems for them exists for a reason. Staying at his desk cranking out more Roblox products might be the best way to keep him away from becoming the victim of his own success.

Anyway good for him. You're right there is a lot of anxiety out there. On some level he should rightly get as much as he can. But let's not pretend you need millions and millions to be safe. We should be working to change that anyway, not merely celebrating massive outliers. I assume since you care about struggling families so much you support his taxation so some of that money can go to people or communities that are struggling? Or since you seem open the idea he needs 40M to survive perhaps you think the government should keep their hands off?

Re: Roblox is minting teen millionaires

#46
post #34

"In the next 10 years, Colley’s goal is to earn enough to go back to making Roblox games as a hobby." Kid is making $400k PER MONTH...and he wants to do this for 10 YEARS before he is comfortable retiring. Apparently his FIRE number is $40M. Everyone's threshold is different and personal. But I think it can reflect a level of anxiety about the cost of living. You aren't OK having $1M or even $10M - you need something…

> Apparently his FIRE number is $40M > it can reflect a level of anxiety about the cost of living I think a lot of people (especially young) just haven't done the actual math. Or have lifestyle desires beyond basic not-working. You can FIRE living in SF for $4M. This gives you $160,000/year basically in perpetuity. If you do it right, there's little to no income tax on that money so 160k should be plenty enough for a…

It's very rational to overshoot in that situation. If you build your lifestyle and then FIRE, you are derisking your budget while you still have income.

But wanting to change your lifestyle when you retire is incredibly risky, especially if you're young without life experience.

Any misstep costs you a fraction of lifetime earnings, and there's no way to recover it.

Re: Roblox is minting teen millionaires

#47

"In the next 10 years, Colley’s goal is to earn enough to go back to making Roblox games as a hobby." Kid is making $400k PER MONTH...and he wants to do this for 10 YEARS before he is comfortable retiring. Apparently his FIRE number is $40M. Everyone's threshold is different and personal. But I think it can reflect a level of anxiety about the cost of living. You aren't OK having $1M or even $10M - you need something…

If you’re planning to not work at all, $1 million is approx. $35,000 per year in salary.

At $5 million, we’re talking more $200k per year. I’d likely still work.

At $10 million, we’re seeing more like $400k.

At $40 million, you can can early at least $1 million/year. This kind of puts you in a new bracket for things you can blow money on.

If you quit working entirely, you will become not very employable so you need to consider that.

Re: Roblox is minting teen millionaires

#48
post #34

"In the next 10 years, Colley’s goal is to earn enough to go back to making Roblox games as a hobby." Kid is making $400k PER MONTH...and he wants to do this for 10 YEARS before he is comfortable retiring. Apparently his FIRE number is $40M. Everyone's threshold is different and personal. But I think it can reflect a level of anxiety about the cost of living. You aren't OK having $1M or even $10M - you need something…

> Apparently his FIRE number is $40M > it can reflect a level of anxiety about the cost of living I think a lot of people (especially young) just haven't done the actual math. Or have lifestyle desires beyond basic not-working. You can FIRE living in SF for $4M. This gives you $160,000/year basically in perpetuity. If you do it right, there's little to no income tax on that money so 160k should be plenty enough for a…

FWIW, the 4% rule is for safe withdrawals for around 30 years of retirement, as in, you retire at 65 and you hope to live until 95, and even then it has a non-zero chance of running out of money. It's not a percentage you should use if you want to retire at 40.

Re: Roblox is minting teen millionaires

#49

Roblox turns a blind eye to child exploitation (whether being creeped on by adults, or being exploited by teens/adults to make games) and makes a fortune out of it. If it weren't online, it'd be illegal and people would be in jail. Also, Roblox's favourite thing - other than sitting back and rolling in the cash that their playerbase generated for them - is puff pieces in the news talking about how people who make gam…

The 2 videos linked here are nearing 5 years old now and have been refuted many times, including by some of the developers mentioned in the article. To condense it as much as possible:

The 1st video hinges on a point where they find that developers earn a revenue cut of 24.5%, a number that isn't correct because

1. it's found by multiplying 3 arbitrarily chosen numbers together (the DevEx rate, the default sales fee, and the mean price of Robux) which isn't representative of what the average developer is earning and barely appears in the actual cash flow on the platform,

2. it's using the DevEx rates and sales fees from 2021. Today, DevEx rates are higher and fees are lower. Engagement-based payouts are not accounted for here either (which are also much higher than they were in 2021).

3. it's profit, not revenue. The expenses are paid for before the money is paid out. Comparing this to other platforms that offer revenue shares instead is misrepresentative.

The 2nd video hinges more on moderation, showing how children are exploited by bringing them off platform, namely to Discord, where most of the evidence referenced in the video takes place. Broadly, this is Discord's problem, not Roblox's.

They then suggest Unity as an alternative platform, which I personally think is a much worse option. I used to be more cynical about this and believe the video creators were clearly being pushed by companies that had a financial incentive in the downfall of Roblox, though nowadays I just attribute it to bad journalism and watchbait.

I suggest reading EcoScratcher's brilliant response https://medium.com/@ecoscratcher/7e1c1f0fc493> and follow-up articles https://medium.com/@ecoscratcher/e51651da6bf4>, of which their 2nd video briefly mentions and claims it misquotes (it doesn't) and misrepresents (it doesn't) their position.

Edits in response to parent comment edits:

> They pay a lot less than it costs to buy Robux, further incentivising you to never actually make real money, because your Robux is "worth more" inside the Roblox walled garden

Specifically through the DevEx programme, Roblox pays a small amount less than it costs to buy Robux to enable them to pay for server upkeep, platform hosting & support, and app store fees (when a developer's game is available through an app store, the app store fees for purchases are paid by Roblox). The rest (any Robux taken out of the economy, including that spent on advertising or first-party avatar items) goes towards platform investment and employee costs.

> This is on top of the 75% cut they take!

The DevEx rates have already been factored into this inaccurate "75%" figure. Taking the DevEx rates out a 2nd time (which, emphatically, never happens on the platform) makes it more inaccurate.

The actual figure, calculated at https://create.roblox.com/docs/monetize-experiences>, is 67% given to developers per in-experience dollar spent, making for a near industry-standard 33% cut. And even this is underrepresentative due to being published before the September 2025 DevEx increase.

Re: Roblox is minting teen millionaires

#50

"According to the company, their monthly player base includes half of all American children under the age of 16." - Wikipedia 2 decades in the making, they are really hitting their stride. But they are not doing enough to protect children from predators and that's a huge legal and regulatory risk.

> But they are not doing enough to protect children from predators

My understanding is that the recent improvements are face scans, and communication limited to people within a few 4 year windows.

They've also increased moderation of chat significantly, especially for the lower age windows.

What low hanging fruit do you see? What's the "ideal" system? Seems like a hard problem, if any sort of cooperative communication/play is involved.

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