US-based Roblox, Epic Games’ setbacks in China point to a splintered metaverse
- Roblox’s recent investor presentation shows the company has scant presence in mainland China, while Epic Games has pulled Fortnite from the country
- Metaverse, seen by some people as the next iteration of the internet, could look very different in China than the rest of the world, analysts said
The recent stumbles of American video game makers Roblox and Epic Games in mainland China suggest that the country is headed towards a future where its metaverse – touted by enthusiasts as the next evolution of the internet – could be closed to foreign companies.
Roblox and Epic Games have both made the metaverse – loosely defined as a shared, immersive 3D virtual space where people can interact and trade – a core part of their business strategy.
But while Roblox said in its IPO prospectus for its New York listing in March that it has high hopes for growth in China, the Californian company’s investor presentation last week showed that few of its 47.3 million daily active users are currently located in the country, the world’s largest video gaming market.
Despite having launched four months ago in China through a tie-up with local giant Tencent Holdings, Roblox remains little known among gamers in the country.
The company launched a trial version of the battle royale blockbuster in 2018 but ultimately could not secure government approval to charge players for in-game commodities.
