Roblox

Roblox announces new game-creation tools and marketplace, $100M in 2019 developer revenue

Posted by | david baszucki, Gaming, online games, player, Roblox, Software, video games, video gaming | No Comments

A week after gaming platform Roblox announced its new milestone of 100 million monthly users — topping Minecraft — the company said at its fifth annual developer conference that its developer community is on track to earn $100 million in 2019. Roblox also introduced a new set of developer tools for building immersive, more realistic 3D experiences; detailed its plans to make its developer software fully cloud-based; unveiled a new Developer Marketplace where creators can set their development assets and tools to others; and more.

Over the past decade or so, Roblox has grown to become a $2.5 billion company, with roughly half of U.S. children ages 9 through 12 playing on its platform.

The company provides game-creation tools via Roblox Studio, which developers use to build their own games for people to play. Roblox doesn’t pay the developers for their work — rather, the developers generate revenue through virtual purchases, which players buy using the in-game currency Robux.

At its invite-only event, the Roblox Developers Conference, which was held Friday, August 9 through Sunday, August 11, the company announced new tools aimed at enabling small developer teams to work together to build more massive games that can support hundreds of players.

The news follows the growing popularity of Roblox’s larger games, like Adopt Me (180.7K players), Royale High (68.7K players), Welcome to Bloxburg (66.7K players), MeepCity (52.4K players), Murder Mystery 2 (33.7K players), Work at a Pizza Place (32.7K players) and others.

The new toolset will offer developers access to an enhanced lighting system, updated terrain and other visual upgrades, including support for building competitive matchmaking games that will match players of similar skill levels, the company said.

Roblox had earlier discussed its plans for these sorts of visual improvements, which VP of Product Enrico D’Angelo said were prioritized in order to up the quality of the games.

The company said at RDC it’s also on track to bring its creation tools, Roblox Studio, to the cloud by year-end. This will allow developers to collaborate in real time, access their development files online and work across computing platforms to do things like manage permissions, versions and rollbacks.

In addition to monetizing their games, developers also will be able to monetize their development assets and tools through a new Developer Marketplace, where they can sell their plug-ins, vehicles, 3D models, terrain enhancements and other items.

RDC 2019 Audience

“The Roblox creator community thinks of things we could never imagine, and their continued growth is our future,” said David Baszucki, founder and CEO, Roblox, in a statement about the new tools. “With top Roblox experiences achieving more than 100,000 concurrent users and 1 billion plays, there’s no denying the power of user-generated content. We are committed to supporting our creator community with the tools and resources they need to realize even greater success,” he added.

The company also made note of its improved localization support for Brazilian Portuguese, English, French, German, Japanese, Korean, Simplified and Traditional Chinese and Spanish, and discussed its recent Microsoft partnership in more detail.

Roblox had previously announced a collaboration with Microsoft Azure PlayFab, which made PlayFab’s LiveOps analytics service free to Roblox’s top 10,000 developers. This allows the game creators to track trends in player behavior, purchase history and game telemetry.

Alongside Roblox’s user growth, its creator community has been expanding, as well.

Today, there are more than 2 million Roblox game creators worldwide, ranging from indie developers to studios with teams of 10 or 20 people. Over 500 developers attended the three-day event in San Francisco and the private RDC 2019 viewing party in London.

“We ultimately become more and more inspired and convinced that this is not just the future of gaming, this is really the future of a whole new category,” said Baszucki, during the keynote. “I believe we’re sitting with not just the future of gaming,” he said, addressing the crowd of developers at RDC, “but the future of human co-experience.”

“We have this vision that there’s a new category emerging that’s bigger than gaming,” the CEO continued. “It’s the category that allows people around the world to connect, to not just play together, but to work together, to learn together and to create together.”

TechCrunch’s Extra Crunch recently analyzed Roblox’s history and business in its EC-1, which you can read here (Extra Crunch membership required).

Photo credits: Ian Tuttle/Getty Images for Roblox

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Roblox hits 100 million monthly active users

Posted by | Apps, Gaming, Roblox | No Comments

Roblox is big. Bigger than Minecraft big. The massively multiple online title has been around since 2006, but the game has been achieving a crazy amount of momentum of late. On Friday, it announced via blog post that it’s grown past 100 million monthly active users, pushing past Minecraft, which is currently in the (still impressive) low-90s.

Here’s a recent piece detailing the service’s dizzying growth since February 2016, who it was hovering around 9 million players. That’s more than 10x growth in a three and a half year span. User-Generated content is a big part of that number, and the company notes that it has around 40 million user created experiences in the game at present.

roblox maus 1

Sources: TechCrunch, VentureBeat, Roblox

“We started Roblox over a decade ago with a vision to bring people from all over the world together through play,” founder and CEO David Baszucki said of the big new round number. “Roblox began with just 100 players and a handful of creators who inspired one another, unlocking this groundswell of creativity, collaboration, and imagination that continues to grow.”

The company behind the game has also been pumping some big money into development. It paid $30 million in 2017 and $60 million in 2018. Next week, it will be hosting hundreds of attendees at its fifth Roblox Developer Conference.

Per the new numbers, around 40 percent Roblox users are female, with players spread out across 200 countries.

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3 lessons from Roblox’s growth to gaming dominance

Posted by | david baszucki, EC-1, Facebook, Gaming, Media, mobile gaming, Nintendo, online games, Roblox, Software, Startups, Venture Capital, video games, Virtual reality | No Comments

Our recently published EC-1 on Roblox recounts the origin story and growth prospects of the company. But there’s one more piece to the story: what Roblox’s impact will be on gaming and the broader startup industry, if the company manages to multiply its current 90 million users.

roblox maus 1

Sources: TechCrunch, VentureBeat, Roblox

We’ve distilled three key ideas out of the EC-1 — lessons that may apply not only to game developers and gaming entrepreneurs, but also to the broader startup industry.

Lesson 1: UGC is a missed opportunity in games

Roblox has shown that user-generated content (UGC) is a missed opportunity for much of the game industry. The company aspires, in a way, to be the YouTube of games. And it is succeeding, with 50 million experiences from 2 million creators to date.

The game industry generally has two problems with UGC. One is the games themselves: AAA games today are too complex, and lack the flexibility and simplicity needed for robust UGC. Roblox shows that a simpler look and feel is a valid alternative to today’s super-sized, beautiful AAA games. (Minecraft proved much the same.)

The other problem is the greater complexity of making games than, say, videos or music. Roblox solved this problem by building its own game engine, which is designed solely to output Roblox-style experiences.

But increasingly, engines like Unity are capable of accomplishing similar feats: games are getting easier to build. It’s now possible that savvy entrepreneurs could build a platform like Roblox, without building an entire game engine.

Lesson 2: New opportunities in gaming are still coming

The game industry is infamously cyclical. New platforms emerge, become promising, then grow overcrowded and competitive. Usually, this cycle relates to hardware (the iPhone, virtual reality helmets, game consoles like the Nintendo Switch) or massive changes in consumer behavior (the emergence of Facebook, the early growth of the internet). But Roblox, a pure software play, shows that exceptions could exist.

It’s still early days. Roblox reported that it paid out $30 million to game developers in 2017, doubling to $60 million in 2018. Developers receive a quarter of the revenue made from their games, with another quarter covering payment processing and another quarter covering cloud hosting. Its top 10 developers made about $3 million on average each. Seven of its games have also entered a “billion plays” club:

Adopt Me, a newer game, hit 440,000 concurrent users in June, a new record for the platform.

When a new platform appears, it’s usually found by amateur developers first. That’s certainly the case with Roblox: its successes are being created almost exclusively by first-time game developers in their teens and twenties. At some point, professional developers are likely to conclude they can do at least as well. The current market is particularly exciting because many games are fairly simple and lightweight — recent breakout hits like Camping 2 and Weight Lifting Simulator 3 are significantly smaller than comparable games on other platforms.

For entrepreneurs interested in creating new platforms or portals Roblox’s success as a combined game engine and self-contained platform also shows that opportunities still exist — if you have the patience to wait for them to mature.

Lesson 3: Patience can create amazing growth cycles

It took Roblox 15 years to grow to its current point. But most of that growth is recent: as seen in the chart above, Roblox experienced 10x growth in about 3 years, from 9 million users in February 2016 to 90 million in April 2019.

So what went into the decade or so during which Roblox was a much smaller platform? As we tell it in the origin story: a great deal of work, and very little paid acquisition.

In its early years, Roblox did buy users, to seed a user base while it worked on an impossibly large vision that included a game engine, platform, social features, a creator community, and its own games. But after a few years, it stopped buying users.

All of its growth since has been organic. That’s from two main sources: word of mouth, and YouTube users who watch one of the many Roblox streamers. Of course, any company can try to do the same. But Roblox had the patience to build a unique product — one which took years of work to even reach partial completion.

The key to it all was long-term adherence to a long-term goal: the creation of a new category, which it calls “human coexperience”. Today, Roblox still can’t be called part of a new category; it’s a game platform. But with more years of work, it may eventually get there.

For more on the Roblox story, see Part 1: The Origin Story, and Part 2: The Business Plan.

Update: TechCrunch corrected “2 million experiences” to be 50 million experiences from 2 million creators. We also provided more context of the revenue breakdown of payments made on Roblox to developers.

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How Roblox avoided the gaming graveyard and grew into a $2.5B company

Posted by | Activision, Apple, Apps, Atlassian, Club-Penguin, Computer games, dave baszucki, David Sze, EC-1, engineering, Facebook, Friendster, funding, Fundings & Exits, fundraising tactics, Gaming, Google, Greylock Partners, Growth, growth tactics, Habbo-Hotel, IMVU, king.com, Kongregate, Mark Zuckerberg, Media, Metaplace, Mojang, MySpace, Roblox, Second-Life, Startups, TC, video games, Virtual reality, Windows | No Comments

There are successful companies that grow fast and garner tons of press. Then there’s Roblox, a company which took at least a decade to hit its stride and has, relative to its current level of success, barely gotten any recognition or attention.

Why has Roblox’s story gone mostly untold? One reason is that it emerged from a whole generation of gaming portals and platforms. Some, like King.com, got lucky or pivoted their business. Others by and large failed.

Once companies like Facebook, Apple and Google got to the gaming scene, it just looked like a bad idea to try to build your own platform — and thus not worth talking about. Added to that, founder and CEO Dave Baszucki seems uninterested in press.

But overall, the problem has been that Roblox just seemed like an insignificant story for many, many years. The company had millions of users, sure. So did any number of popular games. In its early days, Roblox even looked like Minecraft, a game that was released long after Roblox went live, but that grew much, much faster.

Yet here we are today: Roblox now claims that half of all American children aged 9-12 are on its platform. It has jumped to 90 million monthly unique users and is poised to go international, potentially multiplying that number. And it’s unique. Essentially all other distribution services offering games through a portal have eventually fizzled, aside from some distant cousins like Steam.

This is the story of how Roblox not only survived, but built a thriving platform.

Seeds of an idea

GettyImages 1027412388

(Photo by Steve Jennings/Getty Images for TechCrunch)

Before Roblox, there was Knowledge Revolution, a company that made teaching software. While designed to allow students to simulate physics experiments, perhaps predictably, they also treated it like a game.

“The fun seemed to be in building your own experiment,” says Baszucki. “When people were playing it and we went into schools and labs, they were all making car crashes and buildings fall down, making really funny stuff.” Provided with a sandbox, kids didn’t just make dry experiments about mass or velocity — they made games, or experiences they could show off to friends for a laugh.

Knowledge Revolution was founded in 1989, by Dave Baszucki and his brother Greg (who didn’t later co-found Roblox, but is now on its board). Nearly a decade later, it was acquired for $20 million by MSC Software, which made professional simulation tools. Dave continued there for another four years before leaving to become an angel investor.

Baszucki put money into Friendster, a company that pre-dated Facebook and MySpace in the social networking category. That investment seeded another piece of the idea for Roblox. Taken together, the legacy of Knowledge Revolution and Friendster were the two key components undergirding Roblox: a physics sandbox with strong creation tools, and a social graph.

Baszucki himself is a third piece of the puzzle. Part of an older set of entrepreneurs, which might be called the Steve Jobs generation, Baszucki’s archetype seems closer to Mr. Rogers than Jobs himself: unfailingly polite and enthusiastic, never claiming superior insight, and preferring to pass credit for his accomplishments on to others. In conversation, he shows interests both central and tangential to Roblox, like virtual environments, games, education, digital identity and the future of tech. Somewhere in this heady mix, the idea of Roblox came about.

The first release

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Netflix’s ‘Stranger Things’ comes to Roblox ahead of its July 4 premiere

Posted by | Gaming, Media, Netflix, Roblox | No Comments

Netflix is bringing its hit TV show Stranger Things to Roblox. On Monday, Roblox announced the launch of limited-time, Stranger Things-themed items that will be made available to its more than 90 million players, who can earn them by solving daily riddles and puzzles. Other free, limited-time items like a “Scoops Ahoy” hat and Demogorgon mask will also be offered as virtual items for players’ Roblox avatars.

The first of the two themed items are live now and will be free to download through July 12. Four more items can be unlocked by solving daily riddles and puzzles, with a new clue arriving each day ahead of the July 4 premiere of Stranger Things Season 3.

Roblox will also share clues across its social media accounts on FacebookTwitter and Instagram, it says.

What’s interesting about the Roblox integration is that it may reach children younger than those ages 14 and up — the ages that the series itself is rated for (TV-14). (Likely, some braver tweens are already familiar with the show and are watching alongside mom or dad… or at least with their approval.)

However, the Roblox partnership is only one of several gaming-focused initiatives Netflix has planned to market some of its most anticipated programming, including both Stranger Things and other titles.

To unlock Eleven’s Mall Outfit from @Stranger_Things, you’ll need to learn the score. Check our Facebook and Instagram pages for more clues and solve today’s puzzle before July 18th! https://t.co/y78FWxfQUn pic.twitter.com/DYSqhTPoH3

— Roblox (@Roblox) July 2, 2019

At this year’s E3, Netflix detailed a series of gaming initiatives, including integrations with partners like Ubisoft, Behavior Interactive and even Fortnite, in addition to Roblox. Already, some Fortnite players had found the “Scoops Ahoy” Easter egg back when Season 9 launched, Netflix said.

Plus, the company is preparing not one but two new Stranger Things-themed games. The first, called Stranger Things 3: The Game, will launch across platforms including Nintendo Switch, Xbox One, PlayStation 4, PC, Mac, Android and iOS on the same day the third season premieres. Like its predecessor, also by developer BonusXP, the game is meant to be a companion to the current season and features 16-bit action for a nostalgic feel.

Next year, Netflix is planning another new Stranger Things title, with a mobile game for iOS and Android. This one is a location-based RPG/puzzler where players explore The Upside Down hidden all around them, while working with other players to “overcome its emerging evils.”

Netflix is also preparing to launch on Nintendo Switch, Xbox One, PlayStation 4, PC and Mac a turn-based tactics game adapted from the Netflix Original series The Dark Crystal: Age of Resistance.

A wave of digital marketing isn’t entirely new for the streaming service.

In the past, it toyed with mobile experiences to advertise its shows — like the standalone Orange is the New Black app it launched back in 2014, or the “FakeBlock” app introduced to advertise the new season of Arrested Development.

The company also toyed around with a cross between games and TV with the 2018 launch of Minecraft: Story Mode, which some could consider a form of gaming. Netflix, however, did not. It even claimed at the time that the company did not have any plans “to get into gaming.”

Well, that’s no longer true.

While many of the integrations and games themselves are built by partnered developers, Netflix is clearly involved. And unlike the throwaway apps from years prior, these are more series efforts on Netflix’s part — not just promotional vehicles for its shows.

The marketing doesn’t stop at digital games either.

Netflix’s Stranger Things is more than just a show, it’s a whole business unto itself. It’s Baskin-Robbins ice cream flavors, and Target exclusives like a Stranger Things bike, toys and apparel. It’s posters, games and all kinds of other merch, too. And that’s just one show. An analyst previously said Netflix’s merch biz could be a billion-dollar addition to the company’s revenue.

Beyond gaming and other stuff to buy, the Stranger Things empire extends to brand deals with Coke, Levi’s, H&M, Nike, Eggo, Schwinn, Trivial Pursuit, Burger King and more. 

The Roblox and Fortnite integrations are live now. The Season 3-themed game arrives July 4.

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Eyeing an entry into China, Roblox enters strategic partnership with Tencent

Posted by | children, China, Education, games, Gaming, kids, Roblox, STEM, Tencent | No Comments

Kids gaming platform Roblox has its sights set on China with today’s news that it has entered into a strategic relationship with Chinese tech giant Tencent. The companies announced a strategic partnership that will initially focus on education — specifically, coding fundamentals, game design, digital citizenship and entrepreneurial skills.

The joint venture — still unnamed — will be based in Shenzhen, Roblox says. And its eventual goal is to bring Roblox to China. This is something Roblox has been steadily working toward ahead of today, most recently by adding support for Chinese languages and making its coding curriculum available for free in Chinese.

The first initiative from the new JV will be a scholarship fund that sponsors 15 young developers, who will fly to the U.S. to attend a week-long creator camp at Stanford University. The camp, taught by iD Tech, will teach the students game design, including how to create 3D worlds, along with programming fundamentals using Roblox’s developer tools and Lua code.

Roblox and Tencent, together with the China Association for Educational Technology (CAET), are calling for applications from creators ages 10 through 15. Teachers will be encouraged to nominate their students, who can apply online on Roblox’s website. The submissions close on June 14, and scholarship recipients will be notified on June 28.

The first camp will run the week of July 23, and a second session will run the week of August 18. During camp, students will work, eat and stay at Stanford.

“I’m extremely excited to partner with Roblox,” said Steven Ma, senior vice president of Tencent, in a statement. “We believe technological advancement will help Chinese students learn by fueling their creativity and imagination. Our partnership with Roblox provides an engaging way to reach children of all ages across China to develop skills like coding, design, and entrepreneurship.”

“Tencent is the perfect partner for Roblox in China,” added Roblox founder and CEO Dave Baszucki. “They have a deep understanding of the Chinese market and share our belief of the power of digital creation and our vision to bring the world together through play.”

The multi-year JV will continue to invest in educational initiatives, including local coding camps, training programs for instructors to build custom courses and more.

Unlike other gaming companies, Roblox has to do more than just finding a way into China with the help of a local partner — it also has to create an active community of game creators in the region. That’s because Roblox is a gaming platform, not a game maker itself. Instead, third-party creators build their own games on Roblox for others to play.

Roblox gets a share of the revenue the games make through sales of virtual goods.

In 2017, Roblox said it paid out $30 million to its creator community, and noted that number would more than double in 2018. In April, Roblox noted that game players and creators now spend more than a billion hours per month on its platform. Now valued at more than $2.5 billion, Roblox claims more than 90 million monthly active users — a number that could dramatically increase if Roblox launched in China.

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Where top VCs are investing in media, entertainment & gaming

Posted by | Apple, BetaWorks, charles hudson, Electronic Arts, Entertainment, epic games, Eric Hippeau, esports, Facebook, fortnite, founders fund, funding, Fundings & Exits, Gaming, Google, GV, HQ Trivia, instagram, interactive media, lerer hippeau ventures, lightspeed venture partners, Luminary Media, matt hartman, Media, mg siegler, Netflix, new media, precursor ventures, Roblox, scooter braun, sequoia capital, Sports, Spotify, starbucks, Startups, sweet capital, TC, Twitch, Venture Capital, Video, Virtual reality | No Comments

Most of the strategy discussions and news coverage in the media and entertainment industry is concerned with the unfolding corporate mega-mergers and the political implications of social media platforms.

These are important conversations, but they’re largely a story of twentieth-century media (and broader society) finally responding to the dominance Web 2.0 companies have achieved.

To entrepreneurs and VCs, the more pressing focus is on what the next generation of companies to transform entertainment will look like. Like other sectors, the underlying force is advances in artificial intelligence and computing power.

In this context, that results in a merging of gaming and linear storytelling into new interactive media. To highlight the opportunities here, I asked nine top VCs to share where they are putting their money.

Here are the media investment theses of: Cyan Banister (Founders Fund), Alex Taussig (Lightspeed), Matt Hartman (betaworks), Stephanie Zhan (Sequoia), Jordan Fudge (Sinai), Christian Dorffer (Sweet Capital), Charles Hudson (Precursor), MG Siegler (GV), and Eric Hippeau (Lerer Hippeau).

Cyan Banister, Partner at Founders Fund

In 2018 I was obsessed with the idea of how you can bring AI and entertainment together. Having made early investments in Brud, A.I. Foundation, Artie and Fable, it became clear that the missing piece behind most AR experiences was a lack of memory.

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Roblox hits milestone of 90M monthly active users

Posted by | Europe, France, Gaming, Germany, online games, online safety, Roblox, United Kingdom, video games, video gaming | No Comments

Kids gaming platform Roblox, most recently valued at over $2.5 billion, has reached a new milestone of 90 million monthly active users, the company said on Sunday. That’s up from the 70 million monthly actives it claimed at its last funding round — a $150 million Series F announced last fall. The sizable increase in users is credited to Roblox’s international expansion efforts, and particularly its more recent support for the French and German languages.

The top 150 games that run on the Roblox platform are now available in both languages, along with community moderation, customer support and parental resources.

The gaming company also has been steadily growing as more kids join after hearing about it from friends or seeing its games played on YouTube, for example. Like Fortnite, it has become a place that kids go to “hang out” online even when not actively playing.

The games themselves are built by third-party creators, while Roblox gets a share of the revenue the games generate from the sale of virtual goods. In 2017, Roblox paid out $30 million to its creator community, and later said that number would more than double in 2018. It says that players and creators now spend more than a billion hours per month on its platform.

Roblox’s growth has not been without its challenges, however. Bad actors last year subverted the game’s protections to assault a child’s in-game avatar — a serious problem for a game aimed at kids, and a PR crisis, as well. But the company addressed the problem by quickly securing its platform to prevent future hacks of this kind, apologized to parents, banned the hackers and soon after launched a “digital civility initiative” as part of its broader push for online safety.

Months later, Roblox was still surging.

International expansion was part of the plan when Roblox chose to raise additional funding, despite already being cash-flow positive.

As CEO David Baszucki explained last fall, the idea was to create “a war chest, to have a buffer, to have the opportunity to do acquisitions,” and “to have a strong balance sheet as we grow internationally.”

The company soon made good on its to-do list, making its first acquisition in October 2018 when it picked up the app performance startup, PacketZoom. It also followed Minecraft’s footsteps into the education market, and has since been working to make its service available to a global base of users.

On that front, Roblox says Europe has played a key role, with millions of users and hundreds of thousands of game creators — like those behind the Roblox games “Ski Resort” (Germany), “Crash Course” (France) and “Heists 2 (U.K.).

In addition to French and German, Roblox is available in English, Portuguese and Spanish, and plans to support more languages in the coming months, it says.

But the company doesn’t want to face another incident or PR crisis as it moves into new countries.

On that front, Roblox is working with digital safety leaders in both France and Germany, as part of its Digital Civility Initiative. In France, it’s working with e-Enfance; and in Germany, it’s working with Unterhaltungssoftware Selbstkontrolle (USK). Roblox also added USK’s managing director, Elisabeth Secker, to the company’s Trust & Safety Advisory Board.

“We are excited to welcome Roblox as a new member to the USK and I’m honored to join the company’s Trust & Safety Advisory Board,” said Elisabeth Secker, Managing Director of the Entertainment Software Self-Regulation Body (USK), in a statement. “We are happy to support Roblox in their efforts to make their platform not only safe, but also to empower kids, teens, and parents with the skills they need to create positive online experiences.”

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Medal.tv’s clipping service allows gamers to share the moments of their digital lives

Posted by | api, Casual Game, computing, fortnite, gamer, Gaming, Initial Capital, instagram, makers fund, medal.tv, Netherlands, online gaming, Recent Funding, Ridge Ventures, Roblox, satellite imagery, serial entrepreneur, Startups, TC, Twitch, WhatsApp | No Comments

As online gaming becomes the new social forum for living out virtual lives, a new startup called Medal.tv has raised $3.5 million for its in-game clipping service to capture and share the Kodak moments and digital memories that are increasingly happening in places like Fortnite or Apex Legends.

Digital worlds like Fortnite are now far more than just a massively multiplayer gaming space. They’re places where communities form, where social conversations happen and where, increasingly, people are spending the bulk of their time online. They even host concerts — like the one from EDM artist Marshmello, which drew (according to the DJ himself) roughly 10 million players onto the platform.

While several services exist to provide clips of live streams from gamers who broadcast on platforms like Twitch, Medal.tv bills itself as the first to offer clipping services for the private games that more casual gamers play among friends and far-flung strangers around the world.

“Essentially the next generation is spending the same time inside games that we used to playing sports outside and things like that,” says Medal.tv’s co-founder and chief executive, Pim DeWitte. “It’s not possible to tell how far it will go. People will capture as many if not more moments for the reason that it’s simpler.”

The company marks a return to the world of gaming for DeWitte, a serial entrepreneur who first started coding when he was 13 years old.

Hailing from a small town in the Netherlands called Nijmegen, DeWitte first reaped the rewards of startup success with a gaming company called SoulSplit. Built on the back of his popular YouTube channel, the SoulSplit game was launched with DeWitte’s childhood friend, Iggy Harmsen, and a fellow online gamer, Josh Lipson, who came on board as SoulSplit’s chief technology officer.

At its height, SoulSplit was bringing in $1 million in revenue and employed roughly 30 people, according to interviews with DeWitte.

The company shut down in 2015 and the co-founders split up to pursue other projects. For DeWitte that meant a stint working with Doctors Without Borders on an app called MapSwipe that would use satellite imagery to better locate people in the event of a humanitarian crisis. He also helped the nonprofit develop a tablet that could be used by doctors deployed to treat Ebola outbreaks.

Then in 2017, as social gaming was becoming more popular on games like Fortnite, DeWitte and his co-founders returned to the industry to launch Medal.tv.

It initially started as a marketing tool to get people interested in playing the games that DeWitte and his co-founders were hoping to develop. But as the clipping service took off, DeWitte and co. realized they potentially had a more interesting social service on their hands.

“We were going to build a mobile app and were going to load a bunch of videos of people playing games and then we we’re going to load videos of our games,” DeWitte says. 

The service allows users to capture the last 15 seconds of gameplay using different recording mechanisms based on game type. Medal.tv captures gameplay on a device and users can opt-in to record sound as well.

It is programmed so that it only records the game,” DeWitte says. “There is no inbound connection. It only calls for the API [and] all of the things that would be somewhat dangerous from a privacy perspective are all opt-in.”

There are roughly 30,000 users on the platform every week and around 15,000 daily active users, according to DeWitte. Launched last May, the company has been growing between 5 percent and 10 percent weekly, according to DeWitte. Typically, users are sharing clips through Discord, WhatsApp and Instagram direct messages, DeWitte said.

In addition to the consumer-facing clipping service, Medal also offers a data collection service that aggregates information about the clips that are shared by Medal’s users so game developers and streamers can get a sense of how clips are being shared across which platform.

“We look at clips as a form of communication and in most activity that we see, that’s how it’s being used,” says DeWitte.

But that information is also valuable to esports organizations to determine where they need to allocate new resources.

“Medal.tv Metrics is spectacular,” said Peter Levin, chairman of the Immortals esports organization, in a statement. “With it, any gaming organization gains clear, actionable insights into the organic reach of their content, and can build a roadmap to increase it in a measurable way.”

The activity that Medal was seeing was impressive enough to attract the attention of investors led by Backed VC and Initial Capital. Ridge Ventures, Makers Fund and Social Starts participated in the company’s $3.5 million round as well, with Alex Brunicki, a founding partner at Backed, and Matteo Vallone, principal at Initial, joining the company’s board.

“Emerging generations are experiencing moments inside games the same way we used to with sports and festivals growing up. Digital and physical identity are merging and the technology for gamers hasn’t evolved to support that,” said Brunicki in a statement.

Medal’s platform works with games like Apex Legends, Fortnite, Roblox, Minecraft and Oldschool Runescape (where DeWitte first cut his teeth in gaming).

“Friends are the main driver of game discovery, and game developers benefit from shareable games as a result. Medal.tv is trying to enable that without the complexity of streaming,” said Vallone, who previously headed up games for Google Play Europe, and now sits on the Medal board. 

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Roblox makes first acquisition with purchase of app performance startup PacketZoom

Posted by | Apps, CDN, Fundings & Exits, games, Gaming, Mobile, mobile apps, PacketZoom, performance, Roblox | No Comments

Fresh off a $150 million round of funding, kids’ gaming platform Roblox is making its first acquisition. The company says it’s acquiring the small startup PacketZoom, bringing its team and technology in-house to help it improve mobile application performance as its platform expands further into worldwide markets.

Founded in 2013, and based in San Mateo, California, PacketZoom had raised a $5 million Series A late last year. The company combines a content delivery network (CDN) to speed up performance with an application performance management tool to identify issues in a single package, TechCrunch had explained at the time.

The company’s products allow developers access to analytics about the app and network-performance related issues, as well as optimize app delivery and content downloads – up to 2 to 3 times faster.

The system in particular is designed to overcome the limitations of slow and unreliable networks, like those found in emerging markets. It also helps to ensure faster and lower latency data transfers worldwide.

It’s clear how this acquisition makes sense for Roblox, which offers a platform where kids create and play in 3D worlds and games and has global expansion in mind. With PacketZoom integrated into its gaming platform, users will be able to join games faster and have a better experience when playing on mobile devices.

Roblox had said earlier this year it was cash-flow positive and continues to be profitable. It raised funds in order to stock its war chest and have a buffer, while focused on its international expansion efforts. It also said it would use the funds to make acquisitions and open offices outside the U.S. in some regions, like China.

PacketZoom had raised $11.2 million to date from investors including Founder Collective, Tandem Capital, First Round Capital, Baseline Ventures, Arafura Ventures, and others.

According to PacketZoom’s website, it was working with customers like Glu Mobile, Sephora, Photofy, Inshorts, Upwork, News Republic, Wave, Belcorp, GOTA, Netmeds, Houzify, Wooplr, Fluik Entertainment, Wondermall, and others. These relationships will be wound down, as Roblox plans to only use the IP internally, not to support other customers.

Roblox declined to speak to the acquisition price, but notes it was an all-cash deal. It includes all of PacketZoom’s IP and code. PacketZoom’s founder and CTO, Chetan Ahuja, along with the PacketZoom’s four-person engineering team will join Roblox.

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