Roblox CEO David Baszucki: “We’re Being Very, Very Careful In China”

A mixture of optimism and extreme caution best describes Roblox’s (RBLX) strategy for China. Despite pausing operations in China in 2022, the US online gaming corporation announced a strategic cooperation with Chinese internet giant Tencent (TCEHY) in 2019.

At the 2023 Code Conference in Dana Point, California, Roblox CEO David Baszucki declared, “We’re being very, very careful in China. The current state of affairs in China has reached the point where it is necessary to picture an autonomous network rather than one that is fully connected. In a way, we’re updating our infrastructure to the point where we can really manufacture copies of Roblox in China and sell them there.”

Baszucki’s remarks are consistent with what poll data indicate is a common perception: US businesses are less upbeat about their prospects in China.

According to a recent poll by the American Chamber of Commerce in Shanghai, the proportion of US companies that are enthusiastic about their five-year outlook in China has reached a record low of 52% as the nation deals with geopolitical unrest, economic challenges, tariffs, and problems in the real estate market.

Nevertheless, Tencent, who he stated “continues to be an amazing partner,” is supported by the company in China, and Baszucki added that the company is working on the infrastructure to support it there.

Roblox is actively expanding, and Baszucki praised the company’s strategy of drawing in older consumers.

“Right now, we’ve really ceased using the phrase “aging up,” he remarked. “Our user base of over-17s is extremely sizable. The number of senior folks who play [Roblox] is unexpected.”

Unquestionably, that growth strategy includes China as one of the greatest markets in the world.

However, Baszucki did not rule out the possibility that the geopolitical situation involving China and the US would deteriorate.

“You could look back at the last three to four years and you’d see… less and less information going back and forth between the US and China,” he claimed. “As you look at any other platform or any other social media company, you could look back at that time period.”

He went on to say that if conditions continued to deteriorate, “the future will be very hopeless.”

The experiences that are permitted on Roblox’s platform have changed in recent months. Experiences for 17 and up were just added on Roblox. It desires the addition of new AI world-building skills. To launch more engaging ad experiences, it is even collaborating with advertisers.

A lot of growth seems to be being driven by the fact that adults are now outnumbering children in the gaming population, and Roblox is no exception. Though it seems like all of these virtual reality games want to become far more than just games and only for children.

During an interview the CEO was asked about the decision of aging up and why didn’t they do it earlier, and why now. To this he answered, “Actually, even five years ago, why do it? And probably five or six years ago, when we weren’t as big as we are today, we developed this theory [of] all ages around the world not just playing but ultimately learning or going to work or going to concerts or all of this stuff. So we developed this theory that there’s so many ways to grow, and one is all ages. And we said, as we typically do, what would be the hardest way to do this? The easy way might be to split the platform and have an older Roblox or a younger one. The hardest would be to be so good at safety and civility across the platform that we could start supporting those older, more mature experiences at the same time.

And that was the discussion. I’m so proud of what we’ve done now with 17 and up. We’re using photo ID, validating ages, kind of slowly and gently bringing this in, but I’m super optimistic that it supports that vision, that really, these types of platforms at Roblox are future communication and connection platforms. And they’re not just for six-year-olds. They’re not just for 14-year-olds. They’re for 60-year-olds. They’re for 35-year-olds. They’re really for everyone.”

The American businessman, engineer, and software developer David Baszucki, born in Canada on January 20, 1963, is also known by his Roblox user name builderman. His most recognizable role is that of CEO and co-founder of the Roblox Corporation, alongside Erik Cassel. Knowledge Revolution, which MSC Software bought in December 1998, was co-founded by him and ran by him when he was CEO.

In the Roblox Corporation, which controls Roblox, Baszucki has a stake estimated to be worth $470 million as of 2020. This represents around 13% of the firm. As a result of Roblox’s listing on the New York Stock Exchange, he declared that he will donate any future earnings to charitable causes. A New York Times article published in December 2021 claimed that he and his family members had legally avoided paying tens of millions of dollars in capital gains taxes by taking advantage of a tax exemption meant for small business investors. Business Insider reports that Baszucki earned $232.8 million in 2021, making him the seventh-highest paid CEO.