- Joined
- Dec 29, 2021
Now I don't watch/play or do any shit with Roblox, but you'll never guess who came to Roblox's defense, our good friend Corporate Roach. Now, you can watch his garbage take below.
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Hold on, he's saying that because Steam pays 70% of a game's revenue to its developer, that everyone except him is wrong for getting mad at Roblox when they're paying the same percentage? Isn't the problem that Roblox pays in Robux, which is fake money?
I had to look this up, he wrote a long ass comment on his video defending his take:
Seeing a lot of incorrect math in the comments. Cash Out gives 0.0035$ per Robux. This is a rate of 1.4$ per 400 Robux.
So for 4.99$ spent by the customer in UGC the developer receives 0.42$ which is 8.4% of the purchase after conversion. This is the worst possible rate on the lowest and worst converting purchase. At the top end this rate changes to 22,500 Robux for 99.99$ which gives 23.63$ which is 23.6% of the purchase after conversion. UGC developers get access to the entire global audience of Roblox and make an insane amount of money through quantity sales. Their conversion is largely irrelevant in face of 214,000,000 monthly active users. In this case it has everything to do with throughput. I know this because Shaye our artist is a UGC developer and makes bank doing it.
For 4.99$ spent by the customer in private worlds the developer receives 0.98$ which is 19.6% of the purchase after conversion. Again, this is the lowest purchase point and worst possible conversion. 22,500 Robux at 99.99$ gives 55.12$ which is a 55% conversion rate. Again, this conversion is largely irrelevant as it's about throughput in the face of a massive audience.
We see the same thing on other platforms. Why? Because of payment processing fees.
Twitch gives 50/50 cuts on T1 subs that are actually 40% or lower depending on the processing fees for a given transaction. Depending on regional pricing and fees it can reach as low as 5.6%.
YouTube gives 55% of AdRev, has additional processing fees, and is a black box on where that revenue comes from meaning you cannot verify the intended amount.
In Roblox case that processing has no variance and is always exactly the same. They also don't take any extra fees when you transfer the USD from the game to your bank. The business model is normal. Cut to the platform and then an extra cut during processing.
Is Roblox making a lot off this? Yes. Are developers and individual UGC creators as well? Yes. UGC creators having absolutely life changing income off of this system through nearly fully passive means is a lot more common than you would think. For game developers you have a massive captive audience and all of your networking model is handled for you. If we want to debate about if this is "fair" to the creators then you should be talking to those creators not forming arguments on their behalf. Further to join the UGC program you must be 15 years or older and be approved through a manual review process which includes parental approval due to the NDA. There is no quota of work to stay in the program so creators just make whatever whenever they want. To put this into perspective Valves minimum is 13 years old to monetize a game on Steam. That 13 year old limit is the same on Roblox for Cashing out Robux to USD. This is just another platform where creators can generate revenue from their creations.
How do I know all this? Because it's my job to. I create content on Twitch and YouTube and I run all of my decisions based on analytics. Shaye is a Roblox UGC creator and has to do the same in that environment. None of this is hearsay or third party information. This is how we make a living and we're deeply aware of the systems and how they work. If these systems weren't beneficial to creators we wouldn't be creating using them as it would be a waste of time and resources.
If we want to fix something in Roblox then go after things that are actually hurting the users such as Moderation failures and individuals on the platform ripping off younger workers by not paying them appropriately. In that way real issues can be fixed while things that aren't actively hurting creators don't muddy the waters.
So he's saying Roblox actually doesn't pay 70% no matter how you slice it, but it's fine because you're gonna make big bucks so who cares about a missing 50% of revenue here or there? Also notice he quietly switches from comparing the rates with steam, who are helping developers retail an actual product, with Youtube and Twitch, who are paying people that aren't creating a product that can be sold (and if they are selling merchandise there's no way in hell they're going to want Twitch or Youtube to take 80% of those earnings)
This guy just vaguely annoyed me before, but this actually pisses me off. The line:
If we want to debate about if this is "fair" to the creators then you should be talking to those creators not forming arguments on their behalf.
Is especially egregious considering many of the people he's speaking to are developers with firsthand experience with this underhanded practice and are sharing that experience with him, while he himself is not one:


A lot of the comments are saying he's allowed to be wrong or have a bad take every now and again, but that's obviously not what people are taking umbrage at. It's the superior, smug tone, the complete disregard for and unwillingness to listen to people who obviously know better than him, his ability to worm his way out of just admitting he fucked up (Well I have a friend who says they make LOTS of money so which of us is right???), his fast attempt at evading the topic entirely (don't ask why people are discussing the topic, you're the one who started the discussion by making and uploading the short to begin with!) Incredible that it took this long for this tendency to finally catch up with him.