The COVID Effect is a Boon for Kids Online Gaming

Automatic TRANSCRIPT

If you had to guess one company that saw revenues absolutely skyrocket in twenty twenty. What would you say you might think. I don't know what zoom maybe peril others another brand benefiting from a rough twenty twenty. It's roadblocks and online game that counts middle schoolers as its biggest fans. Don't ask me how. I know if you have a preteen noah preteen or are a preteen. Chances are you've heard of blocks. He lets users around one hundred fifty million a month build and play video games without needing to know how to write code. It's free to join. The company makes money through the sale of in-app purchases using its own virtual currency users can buy costumes for their virtual characters or jump up a level or two game and when i say roadblocks makes money i do mean a lot of money. Roablock says revenue jumped seventy percent between september twenty nineteen and september twenty twenty two more than six hundred million dollars. The motley fool reported that the games daily users number over thirty million people. Those figures have investors drooling and last week. They got a chance to buy into roadblocks wild success when the company went public the platforms value soared sixty percent to forty seven billion dollars after its first day of trading so who would have thought an online kids game would be exploding in popularity right about now. Well anyone who has a middle schooler at home. If kids seem extra attached to their tech devices at the moment. they're not alone. The amount of time kids spent on screens doubled in the first half of twenty twenty. As compared to the same period the prior year so reports the new york times custodio which tracks device usage kids ages four through fifteen called the cova effect socially isolated kids largely stuck at home made for quite the captive audience and that meant more money for games like roadblocks one reddit users summed it up nicely. Kids who distance learning always have tabs open and roadblocks the user wrote quote and nowhere. Mommy leaves her purse unquote. But roadblocks isn't the only game out there benefiting from all those open internet tabs minecraft has been making microsoft quite proud parent company as of late the game which bills itself as an open ended online video game saw twenty five percent increase in new players in the early months of the pandemic. Unlike roadblocks minecraft users pay up front for access to the game that netted them over four hundred million in revenue last year. Nowhere near roadblocks is twenty twenty revenue but both companies have turned quite the prophet in a year that decimated several industries but the so-called cove effect is only expected to last as long as well. Cova does right best of secret. Even roadblocks said so in its s one filing they wrote quote. We do not expect these activity levels to be sustained and in future periods we expect growth rates for our revenue to decline unquote whether or not usage rates. Actually plummet is more kids. Go back to school. Long-abandoned screen time rules claw their way back into homes that does remain to be seen but one thing is clear. The roadblocks rage has taught us to never underestimate the power of a kid with access to a technological device and knowing where to find a credit card is helpful to come on. Don't just blame the ipad

Coming up next