Roblox’s Metaverse is overrated, says a new report

A new report warns brands against investing in Roblox sandbox games and other metaverse companies, suggesting that the hype surrounding the metaverse concept may be exaggerated.

Nicknamed ” Metaverse Manifesto: A Realistic Look at the Next Digital Frontier“, the report from the research agency focused on measurement Essence suggests that, with 54.1 million daily active users for the first quarter of 2022, Roblox remains disproportionately small compared to companies like Twitter, which has 229 million daily active users. , and Facebook, which has 1.93 billion.

Also indicates a GWI 2021 report, a consumer information reporting tool, to support the idea that there is some confusion in consumers around the idea of ​​the metaverse. Le rapport a interrogé des personnes sur neuf marchés et a révélé que seulement 33% des personnes comprenaient le concept de métaverse, 37% en avaient entendu parler mais n’étaient pas sûres de ce que cela signifiait et 30% n’en avaient jamais entendu speak.

Roblox users tend to be relatively young, the report continues, stating that more than half of its users are under the age of 13. However, this statistic may be outdated, such as Roblox reported in the third quarter of 2021 that 50.4% of its daily active users were over 13 e Recent reports cite continued growth in older players.

Anyway, only in November 2021 30% of Roblox players were at least 17 years old, supporting the implication that the platform’s user base is relatively young. However, it appears to be changing. Roblox’s second quarter 2022 earnings report noted this men and women aged 17 to 24 are the fastest growing demographics in the industry.

Ultimately, the report states that the Metaverse is “built for Generation Z, Generation Alpha and everything in between”. But that’s not necessarily a bad thing, Essence points out.

“And just like Generation X didn’t stop playing video games when they grew up, these kids aren’t going to stop that behavior,” he says.

The report also addresses disagreement over whether the metaverse will adopt web3 technologies such as blockchain, cryptocurrency, and NFT. He also notices security and moderation issues, which plague platforms like Roblox and Facebook Horizons.

“Gaming platforms are already home to vulgarity and harassment. Add politics, dating, and poorly protected adult content into the mix and, well, it looks a lot like the real world, “the report says.

Finally, the report examines sustainability issues, noting that the underlying technologies that support the metaverse contribute to high greenhouse gas emissions. The metaverse also contributes to electronic waste, which requires infrastructure such as servers and devices to operate. As technology advances, people usually throw away their hardware to make way for new products.

Ultimately, the report argues that companies should err on the side of caution and consider experimenting with metaverse activations if they have the budget, noting that it will be better to experiment in the early stages rather than being left behind on account. However, this remains a tricky question for brands as the concept of the metaverse is still in its infancy and the potential of what’s possible remains unclear.

Consumer enthusiasm for the Metaverse may also diminish. Roblox’s second quarter 2022 earnings report showed that the company did not meet expectations for bookings and experienced an overall decline in user growth. This caused the Roblox shares will fall 12% August 9, and continued its downtrend at $ 46.10 per share, well off the November high of $ 134.72.

While forecasts aren’t as optimistic as they once were, that hasn’t stopped brands like Gucci and Tommy Hilfiger from investing in the Roblox metaverse. Seeking to reach and interact with new audiences, these companies have both created their own Roblox worlds which include minigames and exclusive avatar gear that players can earn to complete specific objectives.

For more ways to earn free avatar gear, check out our list of Roblox promo codes for August. For the music fans among us, you can also check out our list of Roblox music codes for August and learn how to redeem them. You’ll want to show off your new outfit and play your latest tunes, so visit our list of the best Roblox games in 2022 to learn more about our favorites.

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