Key Takeaways
- Roblox accused of inflating player count by 25-42% and engagement hours by 100%
- Former employees indicate Roblox’s inflated user numbers and engagement times
- Refuted report impacts shares with investors worried about Roblox’s financial future
A new report alleges that Roblox has been artificially inflating its player count numbers. This follows after Roblox self-reported major financial losses despite alleged player growth.
Roblox has been a hugely popular game, serving as a sort of hub where players can access tons of games to play. While the title has certainly seen plenty of attention over the years, the exact player numbers the company has reported are now coming into question.
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A new report from Hindenburg Research (via Eurogamer) alleges that Roblox is lying to investors about exactly how many people are actually using the game. By Hindenburg Research’s estimate, Roblox is allegedly inflating its claims on how many individuals are actively playing Roblox by 25-42%, while engagement hours are supposedly being inflated by 100%. Roblox has reported on the number of people who play its game, which matches Roblox‘s Daily Active Users data. However, Hindenburg points out that the DAUs, “according to Roblox‘s own disclosures,” can include multiple accounts run by an individual, so the number of unique players may not be accurate.
Roblox Claims Stirred Suspicion
The report continues that Roblox claimed in 2023 that it can’t tell if a user has more than one account, but former employees speaking with Hindenburg claimed otherwise. The number of daily Roblox users and the hours supposedly spent in the game, on average, also seem to be inflated, according to the research group. Roblox has claimed that users have spent an average of 2.4 hours of engagement per user daily, but that would put user activity 58% higher than the average time spent by 8 through12-year-olds playing all mobile games in a 2021 study. Add to that the apparently significant presence of bots, as evidenced by activity in games and online listings selling an opportunity to purchase such bots, and the numbers simply aren’t adding up.
A Roblox spokesperson has refuted the report, stating that it is “simply misleading.” However, it seems the report has had an impact, as the company’s shares fell by 4.6% following its publication. One can imagine that investors are concerned by the report and may be choosing to give up their shares because of the information alleged in it and the repeated losses Roblox has experienced. If there are fewer players – and they’re less active – than Roblox claims, then advertisers will be less interested in the platform, which will further hurt the game’s finances. It remains to be seen what the future is for Roblox and whether this report can be refuted with evidence from the company.