Ben Sarraille’s Post

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Co-founder @ Makeshift | Manager for the top Roblox, Fortnite, & Minecraft devs

Roblox will give 𝟐𝟓% 𝐦𝐨𝐫𝐞 𝐑𝐨𝐛𝐮𝐱 for non-mobile purchases — that'll tip the scales from app store (Google, Apple) to retailer (Walmart, Target, Amazon), and put more money in the hands of players & creators: The 30% transaction fee on mobile platforms, often called the 'app store tax,' has long been protested by developers. At times, this can mean a legal fight, as with Epic Games v. Apple in 2020. But lawyers need not be involved. After all, the 'tax' only applies to purchases made through mobile systems — find ways for spend to come through other avenues, and you're golden. Hence why so many games with virtual currencies have been encouraging players to purchase gift cards online or at retail stores... a plan Roblox is now doubling down on. 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬: 1️⃣ A win for retailers... ...and, not just for extra purchases. Sure, they'll get some margin on gift card sales, but, more importantly, this will drive major foot traffic to their stores & websites, causing tons of extra purchases (who ever just buys 1 item?) It's for this reason that retailers are the more agreeable partner — the value they gain lies beyond the gift card's price. Where app stores must take from a set pie, retailers can grow it and take from the difference. That's a winning formula. 2️⃣ Most of Roblox Traffic is Mobile While this is a major change, do remember, it will largely apply to a minority. Last we heard, 78% of sessions occur on phones, meaning even with incentive to pay otherwise, many will still purchase through them. Will +25% affect some? Sure. But given so much spending is mid session, it's a habit that needs to be built — and that's why deals which give exclusive items with gift cards, like the recent Walmart x Paramount Spongebob one, will be huge in causing the shift. Because 'more' & 'better' can be trumped by convenience. Exclusivity can't. 3️⃣ The Roblox Tax Cuts If you think about it, that's what's happening: the government (platform) is leaving more disposable income for citizens (players), which they hope will be spent on small businesses (creators). I except to see the normal accelerated growth we do IRL, but am curious how far the resemblance could go — eg, do creators start raising prices? In either case, we've seen as developer pay-outs go up (now $800+ million the last 12 months) the quality of work rises with it... So if there's any incredible projects in the next few months: we'll know why.

Jason Scorrano

Gaming & Sports Brand Partnership Innovation| Connecting Brands with Virtual Worlds and the suppliers leading the way | Fractional Sales Executive | Writing about Gaming, Sports, Media Innovation and Brand Partnerships

4mo

Great insights, Ben! Just picked up Roblox gift cards at Sheetz—placement makes all the difference.

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