The Dark Side of Roblox

The Dark Side of Roblox
Case Code: BECG194
Case Length: 14 Pages
Period: 2020-2024
Pub Date: 2025
Teaching Note: Available
 Price: Rs.400
Organization: Roblox Corporation
Industry: Leisure & Entertainment
Countries: United States
Themes: Business Ethics, Corporate Ethics,Ethics and Morality,Games & Entertainment
The Dark Side of Roblox
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case uncovers the dark side of Roblox Corporation (Roblox), an online gaming platform, which was accused, among other things, of making its players, mostly preteens, addicted to its online games. Roblox also faced allegations of child exploitation and sexual abuse and harassment and of ignoring safety, and security concerns. Founded in 2004, Roblox was a free online gaming platform best known for its Lego-like graphics and its immersive social community where users donned avatars on the platform and went through millions of gaming experiences. The platform had a vast community of 70+ million daily active users (DAUs) spread across 190 countries who created, played, and networked through the in-game experiences built by its users. It had adopted a freemium business model facilitated by its own currency – Robux. It relied heavily on user-built content and advertised that creators could make money by building content for the game. The platform became so popular that as of 2023, users spent 60.0 billion hours on it, averaging 2.4 hours per DAU each day.

Despite its widespread popularity and its significant user base of children, Roblox was beset with several concerning issues. Several investigations alleged that Roblox was exploiting young game developers and users in many ways. Many parents were worried when they saw their kids struggling to cope with the shortcomings that came along with the gaming platform owing to its multi-player format and user-generated content. The case discusses the efforts the company put in to revive its safety and security standards. But with competition soaring in the online gaming space, it remains to be seen how, going forward, Roblox will evolve its monetization policies while ensuring the safety and security of its users.

Issues

The case is structured to achieve the following teaching objectives:

  • Study the business model of an online gaming platform.
  • Analyze the dark side of online gaming platforms
  • Understand the risks posed to children by online gaming apps such as Roblox
  • Explore ways to address safety concerns and child exploitation

Contents

Keywords

darkside; online gaming; roblox; child exploitation; business model; child labour; freemium model; child exploitation; digital gaming; cyber bullying,Roblox, business ethics, corporate governance; online gaming; Growth Flywheel; child abuse

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