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

Abstract Case Intro 1 Case Intro 2 Excerpts

Excerpts

Business Model

Roblox provided a unique platform that allowed users to create, develop, and monetize their own games or “experiences.” It did not make money by creating games; rather, it allowed young users and professional developers to create, socialize, and monetize their own games on the platform, supporting them with the software tools they needed. Developers and game creators were paid 24.5% of all the revenue generated by their games on Roblox..

The Dark Side of Roblox

However, Roblox faced criticism for alleged exploitative practices toward children, its inefficient content moderation policies, and its monetization policy. Many critics alleged that it fell short where safety and security measures were concerned and was exploiting child labor. They also expressed concern over inappropriate content and potential exposure to adult predators targeting children for their personal gains, and causing mental health issues in the kids..

Roblox’s Response

Roblox stated that the gaming platform had always been designed to protect the younger users while adapting to a growing audience of older users. Adhering to safety, civility, and transparency values, Roblox was committed to providing safety to the young users, the company stated..

Exhibits

Exhibit I: Selected Roblox Avatars
Exhibit II: Top 10 Branded Metaverse Experiences on Roblox (December 2023 to January 2024)
Exhibit III: Popular Games on Roblox as of April 2024
Exhibit IV: Statement of Operations (2021-2023)
Exhibit V: Earnings by Developers and Creators on Roblox (Q4 2020 to Q4 2023)
Exhibit VI: Average Daily Time Spent by Users’ on Roblox Vs. other Social Media Platforms
Exhibit VII: Roblox’s Safety, Civility, and Transparency Features

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