User-generated content (UGC) in the gaming space is a buzzy topic, with platforms like Roblox, Fortnite, Minecraft and even GTA Online serving as a platform for thousands of creators to build their own games and in some cases their own fortunes – but it's not a new one.
Twenty years ago, web game portals like Newgrounds and later Kongregate provided a platform for a number of Flash-based hits that went on to enjoy huge success in the early days of the iPhone. By only requiring mastery of the relatively simple and widely-available Macromedia Flash (later acquired by Adobe), it served as a powerful democratizing force for simple game development.
Now Jim Greer, who co-founded Kongregate, works as Senior Director of Game Solutions at Roblox, which he feels serves the same purpose as a platform for game creators – in some cases, the same creators.
Greer notes that Roblox is expanding as a user-generated platform by introducing new genres and targeting older users, much like Kongregate did for a previous generation. Roblox is now applying this model on a much larger scale.
Roblox's latest financials report that 26% of verified users are over 18 – a demographic Greer says is 'growing significantly faster' than others in the Roblox ecosystem and 'monetizes 40% better than regular users.' Average daily active users and hours played in the US for the 18-34 cohort also rose 50% during the firm's first quarter, surpassing all other groups.
In March, Roblox launched two new developer programs: Roblox Incubator and Roblox Jumpstart. Roblox Incubator is a six-month program that helps experienced developers refine their games by providing expert mentorship and support. Jumpstart is an ongoing initiative designed to assist newer creators.
In September 2024, Roblox announced plans to increase its revenue share for developers from 30% to up to 70%, based on purchases made with in-game currency. In addition, Greer says that 'vetted developers' are also connected to external investors.
