What I Read This Week
What I Read This Week
Roblox's Ambitious Plans for the Future: AI, Social Interaction, and a Billion Users. Plus, the return of social gaming and why humanity needs AI.
Listen to Into The Metaverse #98 (with Cathy Hackl).
Read my Deep Dive on the Rise of Avatars Online
Caught My Attention…
Roblox announcements from RDC.
Roblox, a platform that started as a simple sandbox for kids to create and play games, is now gearing up for an ambitious transformation. The company’s goal? To capture 10% of the global gaming content revenue and reach a staggering 1 billion daily active users (DAUs). CEO David Baszucki laid out his vision during the Roblox Developers Conference (RDC), highlighting how the company plans to evolve beyond gaming and become a comprehensive social and creative platform.
Evolving from a Gaming Platform to a Social Universe at its core, Roblox aims to redefine its identity—not just as a gaming platform, but as a broader social ecosystem. With its current user base of 79.5 million DAUs, Roblox already commands a significant portion of the gaming world. Baszucki said Roblox could have more monthly users than the entire AAA gaming ecosystem combined. Yet, the vision goes beyond gaming. Baszucki sees a future where only 80% of users are on the platform to play games. The rest will come to socialize, consume entertainment, learn, shop, or connect with others. To facilitate this evolution, Roblox is introducing new features like Party, allowing friends to group up and play games together more efficiently. Additionally, Roblox Communities will provide developers with enhanced tools to manage their communities, including forums for users to give feedback and discuss experiences. These changes are designed to create a more engaging, interactive, and community-driven platform, emphasizing the social aspect of Roblox beyond just gaming.
One of the most intriguing announcements from RDC was Roblox's plan to roll out a generative AI tool. This tool will empower creators to build complex 3D environments simply by typing a text prompt, such as "Generate a racetrack in the desert." The AI will generate the entire scene, saving creators valuable time and allowing those with minimal 3D modeling skills to craft compelling environments. Roblox's approach to generative AI involves using a model that "tokenizes" 3D blocks, treating them as units that can be predicted, much like a language model predicts the next word in a sentence. A second AI model, trained on 2D data, checks the work of the 3D model to ensure logical consistency. This double-checking mechanism reduces errors like placing trees in the middle of racetracks. This AI-powered approach will enhance the speed and quality of content creation and open the door for developers of all skill levels to participate more fully in building Roblox experiences.
Roblox's push to grow its platform also includes a renewed focus on empowering its creators. Several new initiatives are being rolled out to help developers scale their businesses and earn more from their creations. These include a Creator Affiliate Program, where developers can earn revenue for bringing new users to the platform, and new opportunities to sell physical merchandise within Roblox experiences, thanks to a partnership with Shopify. Additionally, Roblox is increasing the revenue share for paid experiences. The company has optimized its infrastructure to keep costs low, enabling it to offer up to a 70% revenue share for developers creating high-value, paid experiences. This shift in economics and price optimization tools could make Roblox even more attractive for developers looking to monetize their content differently.
Safety remains a critical focus for Roblox, especially as it grows its user base across all age groups. The platform has been criticized for issues around moderation and the safety of its younger users, but Roblox is addressing these concerns head-on. With over 250 AI models currently live, the company employs AI to monitor voice chat in real-time, screen for inappropriate content, and issue instant reprimands or bans for repeated violations. Baszucki reiterated the company’s commitment to safety, stating that any incident on the platform is "unacceptable." Roblox is also releasing new tools like the Ban API and Alt Account detection to help developers maintain a safe environment in their experiences. By improving safety and transparency, Roblox hopes to build trust and ensure a positive user experience, vital for sustaining growth and reaching its target of 1 billion users.
Roblox's ambitious goals come with significant challenges. Capturing 10% of the global gaming content revenue is no small feat, especially given the fierce competition from other platforms. However, Roblox does not rely solely on traditional gaming experiences to achieve this. Expanding into social interactions, commerce, and AI-driven content creation, it’s betting on a future where it becomes a central hub for digital social interaction and creativity. The company's decision to open-source its 3D foundational AI model is another strategic move that reflects its commitment to innovation and collaboration. While this could allow competitors to benefit, it also has the potential to drive broader adoption of Roblox's technology, ultimately enhancing its ecosystem.
Roblox is positioning itself as more than just a gaming platform; it aims to be a cornerstone of digital social interaction, creation, and commerce. By leveraging AI, expanding monetization opportunities for creators, and focusing on safety and community, Roblox is laying the groundwork for an ambitious future. Whether it can achieve its goal of 1 billion daily active users remains to be seen, but one thing is clear: Roblox is reshaping the boundaries of what a digital platform can be.
Discord can reimagine social gaming.
Originally designed as a communication platform for gamers, Discord is doubling down on its roots by creating a robust ecosystem for web-based games directly on its platform. With over 200 million monthly active users—many gamers—Discord has launched Discord Activities, allowing users to play games and enjoy other interactive experiences without leaving the app. This new feature leverages Discord's strengths: social integration, developer-friendly tools, and a passionate, gaming-centric user base. By offering integrated social features like chat, voice, and video, Discord aims to provide a unique, immersive experience that sets it apart from previous social platforms like Facebook and Snapchat's attempts to enter the gaming space.
The opportunity for developers is significant, according to A16Z’s Game Fund. With its deep focus on social engagement, Discord's platform is built to support game creators in cultivating communities and driving long-term engagement. Unlike previous platforms that failed to balance their core social media functions with gaming, Discord’s foundation is already intrinsically social, making it a natural fit for integrating games. Developers are encouraged to design games that utilize Discord’s social channels and work closely with the platform team to refine their creations. As Discord continues to expand its Activities feature, early adopters have a unique chance to innovate and capture a growing audience, potentially shaping the future of social gaming.
Other Reading…
Why humanity needs AI (Exponential View)
Yuval Harari’s Apocalyptic Vision (The Atlantic)
AI Avatars as a Journalist's Shield (The Media Copilot)
A few thoughts on games as a platform (Superjoost Playlist)
Follow Yon on Linkedin.