The seemingly unstoppable force that is Roblox might not be so unstoppable after all. The company share price has dropped by 70% following the publication of its second-quarter earnings, which show a decline in players and lower-than-expected monetisation.
In an earnings call (via Games Industry) Roblox CFO Naveen Chopra said the company attributed the shortfall to a dearth of "vintage viral games", with players shifting attention to "new and evergreen experiences with lower hourly monetisation". This was exacerbated by changes in Roblox's recommendation algorithm, which Chopra says "optimises for long-term retention" at the expense of "near-term monetisation".
