Roblox, which recently made its debut on the New York Stock Exchange, has quickly become one of the most valuable video game companies in the world. As I write this article, Roblox has effortlessly overtaken household video game names such as Take-Two (maker of Grand Theft Auto) and Electronic Arts (EA) (maker of Battlefield and FIFA) in terms of market cap, while only making a fraction of the incumbents’ revenues and none of their profits.
And there is good reason for this change in pecking order. Unlike Take-Two and EA, Roblox is not just a gaming company. It is a virtual playground for nearly 200 million monthly users, with two-thirds of those users being of school-going age. Such a congregation of children on any one platform has been unheard of—Roblox hosts more students every month than all school-going children in the U.S., U.K., and Canada combined.