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Thesis
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Markos Dimitris Bizopoulos                                                                 BA Games Design 2025

Student ID: 22010525






How Does a Free-to-Play Platform like Roblox Sustain Economic Growth whilst being Free-To-Play?













               

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Abstract

This thesis aims to compare and connect broader studies found on monetisation methods used in free-to-play (F2P) games to Roblox’s (2006) own monetisation systems.

This paper explores the monetisation strategies employed by Roblox, a leading F2P gaming platform, focusing on how its economic systems influence player behaviour and support a thriving developer ecosystem. Through a case study approach, the research examines key mechanisms such as microtransactions, premium subscriptions, and the Developer Exchange (DevEx) programme. These systems are analysed for their role in balancing user engagement, revenue generation, and the promotion of user-generated content.

Making use of academic literature and industry reports, this study highlights the interplay between psychological engagement techniques and economic incentives in driving F2P platforms success. By offering developers real-world monetary rewards through the DevEx program, Roblox transforms traditional gaming into a diverse space of entertainment and entrepreneurial opportunity. The research also investigates the broader implications of F2P models, including potential ethical concerns about monetisation practices and their impact on player experiences.

This study concludes that Roblox’s monetisation ecosystem exemplifies a sophisticated integration of user engagement and creator-driven economies, offering potential insights into the evolution of F2P platforms and their sustainability within the digital entertainment industry.



Content List


Title _____________________________________________ 1
Abstract __________________________________________ 2
Content List _______________________________________ 3

Introduction _______________________________________ 4

Literature Review ___________________________________5
 1.1 Roblox’s Virtual Currency - Robux ______________________6
 1.2 Game Passes and Developer Products____________________7
 1.3 Subscription Model __________________________________7
 1.4 Player Driven Economy _______________________________9
 1.5 Psychological Mechanics in F2P Models _________________ 10

Methodology ______________________________________ 12

Case Study & Discussion _____________________________13
  1. Robux as a Virtual Currency____________________________14
  2. Limited Time Content and Exclusive Items________________ 15
  3.Player Driven Content and User Generated Content__________ 16
  4.Understanding Roblox’s trading system____________________18

Conclusion ________________________________________ 19
Bibliography _______________________________________21
Image List_________________________________________ 22

Introduction


Free to play as the word suggests, are video games that are available to play or experience for free with no upfront cost. Namely Roblox has been a free to play online game since when it first released in September 2006. The thesis will look at papers and research that covers free to play models in a broader spectrum, which then will be directed and connected to similar models employed within Roblox. There are a lot of different models and methods of monetisation used. This paper will aim to categorise some of them in an organised and comprehensive manner to better understand how the F2P model is being applied on the platform. It will also raise some ethical topics regarding the monetisation processes.
Free-to-play (F2P) gaming has fundamentally altered how players engage with in-game economies and how video games generate revenue. Unlike traditional models where games are purchased outright, F2P games are accessible for free and can tempt players with the promise of expansive, dynamic worlds without requiring a financial commitment. One of the most well-known websites leading this approach is Roblox, a popular platform for game production that enables users to create and play their own games. More than 60 million people use Roblox every day, according to the latest statistics.

This thesis explores Roblox's usage of F2P monetisation strategies, user-driven economies, microtransactions, and subscriptions to encourage player spending. The core of Roblox's economic approach is the concept of optional but recommended purchases that enhance gameplay, personal expression, and social standing on the network. In-game exclusives and microtransactions can exploit psychological triggers such as social competition, scarcity, and customisation, according to behavioural and economic theories of consumer purchasing. Furthermore, Roblox's architecture encourages a spending culture in addition to a virtual economy by enabling players to showcase their status through unique digital belongings.

Despite the models' accessibility and appeal, greater focus has been placed on the morality of F2P monetisation and its effects on players. This thesis aims to contribute to the growing body of research on digital monetisation by analysing how Roblox's free-to-play business model influences player spending habits and the broader effects of monetisation across digital gaming ecosystems.


Literature Review


This text aims to dissect the monetisation methods applied within Roblox while also connecting them to existing research on free-to-play models. The F2P game model has completely changed the gaming industry by giving players access without charging them in advance and making money through in-game sales. F2P design is best exemplified by games like Roblox, which combine social aspects with a sizable user-made platform. These games use sophisticated techniques to encourage player spending through virtual products, subscriptions, and other channels. Because of its unique monetisation technique, which reflects broader trends in F2P models, Roblox is a topic of interest for research on how F2P models that integrate gaming, social networking, and player creation effect purchasing patterns.

1.1 Roblox’s Virtual Currency - Robux

The main source of revenue for Roblox is "Robux" a virtual currency that users purchase with real money. Robux can be used for a variety of in-game purchases, such as buying clothing, game passes, special powers, and avatars. Roblox promotes spending through a system that is frequently detached from real-world value by employing an in-game currency instead of direct cash transactions. This enables users to make frequent, lower-commitment purchases without constantly evaluating real-world prices. Esko Vankka (2014, pp. 5) in his thesis writes “Instead of forcing the player to pay, the game attempts to persuade him to buy some virtual goods. One of the most often used virtual goods sold for real money is virtual currency”, this text can be connected to Roblox since it is a game that anyone with a computer or other console can download and play entirely for free. Nonetheless, it still has a currency of its own that can be acquired by spending real money.

Through research, it can also be seen that virtual currencies may exist in some different forms, namely “hard” and “soft” currencies (Luton Will, 2013). From this we can understand that Robux is a hard currency since it is mainly acquired by being purchased with real money. We also start to see one of the ways the free-to-play model is implemented within Roblox and get an understanding of how these monetisation methods are profitable.

Looking at Roblox’s history, another thing to note would be that it used to have a soft currency. Tickets, otherwise called Tix, were a soft currency meaning a form of money that could be earned for free. Tix were worth far less than Robux but could also be exchanged from one virtual currency to the other, they could also be used to purchase virtual items but at a higher cost compared to Robux. It was introduced in August 2007 and it was abolished in April 2016 and it could be passively earned by login into the Roblox website once every 24 hours. But since it has been more than 8 years we can see that just by using its hard currency Roblox has been able to be continuously successful.


1.2 Game Passes and Developer Products


Roblox allows game currency or boosts, furthermore another thing to note would be that game developers have mostly complete freedom to make these "Game Passes" and "Developer Products". This framework promotes recurring transactions by enhancing players' gaming experiences. Because unique things and privileges appeal to the psychology of scarcity and personal investment in games, players are enticed to purchase products that enhance their status or ability within a particular game. Luton (2013, pp. 108) in his book states “F2P has an advantage. It allows for much more control over the market the player is in by creating its own and making you, the maker of the game, the only supplier” This indicates that a Roblox game developer can have their own revenue stream within Roblox through Game Passes and Developer Products. Roblox itself continues to turn a profit, because it taxes game developers a portion of the Robux they receive from these transactions.


1.3 Subscription Model


Roblox Premium is a monthly subscription service that offers Robux at a discounted rate and permits trading on the platform's marketplace; it was first introduced in September, 2019. This subscription choice is compatible with research on F2P game retention strategies, which show that regular, less costly subscriptions encourage user loyalty and produce a stable revenue stream (Kazimi Lida, 2020). By fostering a sense of prestige and community among users, subscriptions raise the likelihood of continued involvement and spending. Additionally, getting a premium subscription can be promoted by independent creators as well. Namely some games (Figure 1) within the platform of Roblox can give certain exclusive perks, boosts or benefits to users that have a premium subscription.


My screenshot (Figure 1: An example of promotion of the premium subscription. StarX Inc (2024). Anime Strike Simulator ([EXOTIC UPD]). Roblox)

This can make the premium subscription model more appealing to players. (Leaver and Willson, 2016, pp. 118) write “F2P games can be downloaded online at no cost from application (app) stores. While there may be no initial acquisition cost with F2P games, in order to access certain game content, players often have to pay a premium fee in the form of real money transactions”. Roblox employs this monetisation method quite often, helping it have a sustainable and profitable revenue model.

Furthermore, a premium subscription being promoted on a website with a sizable portion of its audiences being young can raise moral concerns about the potential for the community to develop a "elite" tier where purchasing privileges are widely accepted and desired. It can be argued that premium-based benefits and the promise of exclusivity could encourage players to spend money without fully understanding the recurring costs associated with subscription services, blurring the line between gaming and consumerism.

         

                                     

1.4 Player-Driven Economy


Roblox’s monetisation model extends beyond player transactions, incorporating a unique incentive for creators through its Developer Exchange (DevEx) program. DevEx enables developers to convert their earned virtual currency, Robux, into real-world money, fostering an entrepreneurial ecosystem within the platform (Roblox Corporation, 2024). By offering monetary rewards within its platform, Roblox attracts skilled creators who are motivated to build engaging games, premium assets, and virtual experiences. This model aligns with broader trends in F2P games, where platforms balance player engagement with creator retention to sustain growth (Paul Christopher A., 2020). DevEx serves a dual purpose: it provides creators with tangible financial benefits while reinforcing Roblox’s business model (Figure 2).

My screenshot (Figure 2: Roblox’s example of how the Developer Exchange program works, 2024)

Studies on user-generated content platforms indicate that monetary incentives can increase the quality and frequency of content creation, further enhancing player engagement (Hamari, Hanner and Koivisto, 2017) (Hamari et al. hereafter). However, the program also raises ethical and economic questions, such as whether the exchange rate adequately compensates creators for their efforts. Additionally, DevEx eligibility criteria, such as minimum thresholds and tax compliance, may limit access for smaller-scale developers, reflecting potential disparities in earning potential within the platform’s economy (Roblox Corporation, 2024).

1.5 Ethical Considerations of F2P games that occupy younger audiences


Roblox's user base is quite diverse when it comes to ages. Based on research 58% is 16 or younger, whilst the other 42% is aged 17 and above. It can also be noted that some percentage of the adult Roblox players would be players who first started playing when younger and are still playing the game (Figure 3).
My screenshot (Figure 3: Roblox user distribution worldwide 2023, by age group (Clement J., 2023))


This age demographic can raise ethical questions around the use of F2P monetisation, as studies indicate that younger players may lack the impulse control and financial understanding needed to evaluate in-game spending critically.  Raising ethical questions about the F2P models integrity, Alha Kati et al. (2017, pp. 7) comments “However, it was noted that the combination of children and F2P is ethically problematic. The concepts of money might not yet be clear to children.”

A case could be made that F2P games capitalise on the impressionability of younger audiences by employing psychological strategies like impulse purchasing and reward-based spending, which can lead to unintended financial commitments (King and Delfabbro, 2020).
Roblox's monetisation method demonstrates the broader strategies used in free-to-play games to encourage spending through a combination of in-game currency, subscriptions, and socially motivated rewards. Its success demonstrates how F2P games may employ psychologically alluring monetisation strategies to both maintain player engagement and make a sizable profit. Additional research on how Roblox and similar platforms affect consumer buying habits and the ethics of game monetisation for younger audiences could provide crucial information about how the gaming industry will evolve as these platforms grow.


Methodology

This thesis uses a qualitative approach, utilising existing studies and research about free-to-play (F2P) monetisation models to provide readers with a deeper understanding of how Roblox operates as a profitable yet free-to-access platform. The aim is to connect broader industry practices with the unique methods Roblox employs to monetise its user base while fostering a dynamic and sustainable ecosystem.

To achieve this, the research integrates findings from academic studies on F2P models, focusing on strategies such as microtransactions, subscription incentives, and psychological engagement techniques (e.g., King and Delfabbro, 2019; Zendle, Meyer and Over, 2019). These studies form the foundation for understanding the mechanics of monetisation, which are then applied to Roblox’s systems. Particular attention is given to the platform's use of in-game currency Robux, its premium membership benefits, the Developer Exchange (DevEx) program and the trading feature, which bridges the gap between virtual creativity and real-world earnings.

This research uses a case study methodology to analyse Roblox's revenue-generating strategies inside its free-to-play business model. The study clarifies how specific revenue-generating tactics, such as Robux, time-limited content, and the user-driven marketplace, impact player purchasing habits and affect player experience. The fact that each case study reflects a distinct Roblox feature allows for a thorough examination of how commonly used psychological factors within our day to day lives such as scarcity, social influence, and decoupling the process by which in-game money hides real-world expenditure.

This approach enables an analysis of the ethical implications of Roblox's revenue-generating strategies, in relation to its player base who may lack the financial literacy necessary to comprehend these strategies responsibly. While case studies provide a thorough examination of each monetisation strategy, this method may limit the findings' generalisability to different gaming platforms. Nonetheless, the case study approach offers a targeted analysis of how Roblox's free-to-play (F2P) model leverages significant psychological mechanisms to promote engagement and spending in its online marketplace.


Case Study & Discussion


This discussion will examine a few particular monetisation techniques within Roblox, going into their workings, effects on players, and ramifications. Going over Robux as a Virtual Currency, Exclusive Items and Limited-Time Content, Player-Driven Marketplace and User-Generated Content and Understanding Roblox’s Trading System would all be examined in this part. Further connecting and understanding sustainable monetisation methods applied within Roblox.

We will examine how these characteristics use psychological concepts like scarcity, status, and personalisation to promote spending behaviour. Additionally, this part of the thesis will make reference to and discuss topics introduced in its literature review.


1. Robux as a Virtual Currency

The primary Roblox currency, Robux, allows users to make a wide range of in-game purchases. By making Robux the only means to purchase unique goods, Roblox not only encourages regular spending but also establishes a secondary economy in which Robux is valued. In-game currency systems can lead to higher spending than straight real world currencies because of the decoupling effect, which makes players less conscious of the true cost of their purchases, according to research on virtual economies, Hamari et al. (2017). In order to completely incorporate Robux into the user experience and promote significant purchases, Roblox frequently gives Robux out as a bonus with its premium memberships.                          

Robux's effectiveness stems from its ability to create a self-sufficient economy on Roblox's platform and by making it a "hard" currency, this ensures the self-sufficiency of the currency. Based on this paper's literature review and the qualitative analysis on F2P monetisation methods it can be argued that this tactic could be exploitative, especially for players who may lack the financial understanding to accurately assess their spending.

2. Limited-Time Content and Exclusive Items

Roblox frequently releases time-sensitive or exclusive items that can appeal to players’ desire for rarity and social prestige. Through exclusive releases, such as holiday-themed outfits or special event items, Roblox leverages scarcity to increase perceived value. Behavioural economics highlight scarcity as a powerful motivator, often compelling Roblox users to spend impulsively to avoid missing out (Zagal, Björk and Lewis, 2020). With limited-time offers, such as in-game items available only for a certain period or even seasonal events, like Christmas, Halloween, Easter, etc. can create a sense of urgency that increases the desire to purchase, which reinforces Roblox’s ability to drive repeat spending. Making it a viable monetisation method.

It is also a method that game developers within Roblox utilise to make profit. Exclusive packs or other forms of in-game purchasable packs with a time limit can seem more appealing to players, giving them a sense of urgency to purchase the product. It is a highly profitable model because game developers could theoretically make as many of these limited time game passes and have the freedom to price them as they see fit or even make them available to be purchased multiple times (Figure 4).

My screenshot (Figure 4: Example of an exclusive pack that can be purchased with Robux. StarX Inc (2024). Anime Strike Simulator ([UPD 19]). Roblox)

This can at times also create a big gap between F2P players and pay to win players within a game. The player with the money to spend will be stronger or better than the person that chooses to not spend money on certain Roblox games. This dynamic creates a distinct divide between players who choose to spend money and those who opt to play without financial investment, leading to what is termed as a pay to win (P2W) disparity.

This case study explores how such disparities manifest in Roblox and their implications for player experiences and community dynamics. The pay to win disparity in certain Roblox games reflects a broader tension within the F2P gaming industry. While monetisation strategies can drive platform profitability and support developer creativity, they also create challenges in preserving fairness and inclusivity. By examining this dynamic through this paper, we gain a deeper understanding of how F2P monetisation models sustain Roblox’s economic growth and how this can affect players' experiences and community interactions, offering potential insights for improving balance in digital economies.


3. Player-Driven Marketplace and User-Generated Content


Besides the incentive Roblox itself has to make profit through its platform, because it is a free to play and create platform there are also ways that Roblox gives incentive to developers to monetise their games.
The Roblox Developer Exchange (DevEx) program exemplifies how free-to-play platforms incentivize creators while maintaining profitability. Through DevEx, developers who generate substantial in-game revenue can convert their earned Robux into real-world currency, effectively making game creation a viable profession. This system transforms Roblox from a gaming platform into an ecosystem for digital entrepreneurship, aligning with broader trends in participatory economies (Hamari et al, 2017).

One of Roblox’s key innovations is its engagement-based premium payouts, which reward developers for player interaction, particularly from Premium subscribers. This model complements DevEx by ensuring that highly interactive games yield consistent earnings for their creators. As a case in point, developers of popular Roblox games like Adopt Me! have reported significant financial returns, showcasing how DevEx enables scalability for successful projects.

However, the DevEx program’s structure also introduces certain limitations. The minimum threshold of 30,000 Robux raises questions about the equitable distribution of earnings. For smaller developers or those creating niche games, reaching this threshold can be a significant barrier, potentially discouraging innovation among emerging talent. Moreover, DevEx’s stringent eligibility requirements, such as tax compliance and adherence to Roblox’s community standards, ensure ethical participation but also exclude those unable to meet these criteria (Roblox Corporation, 2024).

Critically, DevEx contributes to the platform’s dynamic but complex economy. It incentivizes high-quality content creation, ensuring a steady influx of engaging games and experiences. Yet, this system also reflects the broader challenges of platform-based economies, where a significant portion of earnings is concentrated among top developers, leaving smaller creators to navigate barriers to monetisation. Such dynamics underscore the need for future reforms that address disparities in earning potential while preserving the program’s core incentives.

4. Understanding Roblox’s Trading System

Based on these three topics discussed, looking over Roblox’s trading system and its role for its digital economy will help us further our understanding of how a F2P platform like Roblox sustains its economic growth while being F2P.
The trading system within Roblox is a crucial part of its player-driven economy, enabling users to exchange limited-edition items, virtual assets, and collectibles (Paul, 2020). Unlike straightforward microtransactions, trading introduces a dynamic layer of interaction and economic complexity, allowing players to engage in a market-driven system that mirrors real-world trading practices. This section explores how trading fosters community engagement while also influencing monetisation behaviours and economic disparities within the platform.

To even have access to the trading system within Roblox you need to be subscribed to a premium membership. Non premium members are not able to use this feature. Trading in Roblox often revolves around limited or exclusive items, which can only be acquired through specific events, purchases, or trades with other users. Said exclusive items can also be assets that have a set amount of them existing, increasing its Robux value. This system encourages active participation in the platform’s marketplace, as players would seek to acquire valuable assets to enhance their status or aesthetic preferences within the game.

Conclusion

This thesis explored the monetisation methods used within Roblox, one of the leading free to play gaming platforms. It strived to make use of broader research on the topic of free to play games, aiming to connect the two and further our understanding of the multiple monetisation strategies that exist in the space of Roblox. By closely examining elements such as premium subscriptions, microtransactions, Developer Exchange (DevEx) and the trading system, it becomes evident that through a sophisticated economic ecosystem Roblox generates significant revenue while simultaneously engaging its diverse playerbase. Roblox exemplifies the evolution of F2P monetisation methods in the gaming industry through its ability to intertwine gameplay mechanics with real world economic principles.

One of the key takeaways of this study is how Roblox leverages psychological and economic strategies to encourage spending while balancing its appeal to a wide diverse player demographic. Making use of features like limited time offers, premium benefits, exclusive items and a pay to win disparity can serve to incentivise purchases, creating an engaging but commercially driven environment. Furthermore, the DevEx program highlights a unique component of Roblox’s economy, offering an opportunity to developers to transform their creativity into tangible income, which in turn reinforces the platform’s reliance on user-generated content. Similarly, the trading system fosters engagement and community interaction, but since it is only a feature accessible to premium members it raises some concerns about accessibility and fairness as financial resources can impact a players ability to partake in the trading system.

Even though Roblox’s monetisation methods are innovative and quite unique, they can also possibly present some challenges and ethical considerations. The disparities can occur between a non-paying and paying player may affect the inclusivity of the platform. In addition, the nature of trading and an emphasis on virtual exclusivity can obscure the lines between financial risks and gaming. To mitigate these potentially negative impacts, consumer education and industry-wide transparency could be helpful solutions.
 
In conclusion, Roblox presents both the complexities and opportunities of modern free to play monetisation. By having integrated community driven content and game creation, dynamic virtual economies, and diverse spending incentives, it has established itself as a pioneering force in the gaming industry. This thesis aimed to provide an extensive understanding of how these monetisation strategies operate, helping the reader understand them and their broader implications for the gaming landscape and player experience. Moving forward, future research could explore the long-term effects of these monetisation methods, particularly as digital marketplaces and virtual economies continue to evolve.











BIBLIOGRAPHY


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Image List


Figure 1 [Screenshot]. Available at: https://www.roblox.com/games/18401171146/XMAS-Anime-Strike-Simulator (Accessed October 2024).

Figure 2 [Screenshot].  Available at: https://en.help.roblox.com/hc/en-us/sections/200831914-Developer-Exchange (Accessed November 2024).

Figure 3 [Screenshot]. Available at: https://www.statista.com/statistics/1190869/roblox-games-users-global-distribution-age/ (Accessed November 2024).

Figure 4 [Screenshot]. Available at https://www.roblox.com/games/18401171146/XMAS-Anime-Strike-Simulator (Accessed November 2024).