Author: Roblox

Founded in 2004 by David Baszucki and Erik Cassel, Roblox pivoted from a physics engine to a "Human Co-Experience" platform. It went public via direct listing in March 2021 at a $41B valuation, riding the pandemic tailwind. The core business model relies on selling Robux (virtual currency), taking a ~70% rake on transactions while offloading content creation costs to millions of independent developers. This created massive leverage but introduced "black box" safety risks. Since late 2023, the strategy shifted to "aging up"—courting users 17-24 with dating experiences, realistic avatars, and programmatic advertising. This pivot triggered the current regulatory backlash, as features designed for adults (dating, uncensored chat) were deployed on a platform infrastructure built for children.