alt Hacker News> 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.
Replies
> 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>.
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.