Roblox is often incorporated into memes on the internet and overlooked by many due to it being aimed at kids, however, a recent development may just see the company being taken a lot more seriously. Roblox Corporation has only made one live service game which the company itself is named after (Roblox) but this has not stopped it from staking its claim on the stock market.
While Roblox spent 3 days offline at the start of the month, however, this did not stop Roblox Corporation shares from jumping more than 40% on Tuesday which catapulted the company's market cap just north of $62 billion. To put that figure into perspective, Electronic Arts, which offers a plethora of games spanning countless different genres and systems has a market cap of $39.7 billion as of this week.
Roblox Corporation's $62 billion market cap was enough to make the firm the most valuable US gaming company by a relatively wide margin. The corporation soared past the previous most valuable US gaming company, Activision Blizzard, by more than $10 billion as its market cap currently stands at $52 billion. This is in part owing to the delay of Diablo 4 and Overwatch 2 which saw Activision Blizzard's drop by a sizable 14%.
Roblox can also attribute much of its success to the fact that it is a free-to-play live service games platform that allows users to design and create their own games within the title. Roblox is also offered on a multitude of different platforms and is easily able to run on nearly any PC or smartphone. The game has been out since September 1, 2006 and since then it has gained mass popularity as even fast-food chain Chipotle Mexican Grill advertised a promotion within the game that allowed players to claim a free burrito in store.
This caused a huge surge in players as many rushed to claim their free burrito coupon and in turn, was noted by many as the reason Roblox spent three days offline. Roblox's offer of free burritos was not the only reason the company became the most valuable US gaming company as unfortunately, Activision Blizzard's ongoing issues with its toxic workplace culture played a large role as well. The multiple lawsuits and investigations regarding alleged sexual harassment and discrimination against women are still ongoing and have damaged both the company's image and its share price significantly meaning that Roblox Corporation may stay as the most valuable US gaming company for some time to come.
Roblox is available now on PC, Xbox One, and mobile devices.