Roblox Malfunction Cost Billion of Dollars

The popular online sandbox Roblox was experiencing a large-scale outage from October 29th to October 31st, inclusive, when the company's servers were shut down for technical reasons. At the moment, it is already known that it occurred due to an error in communication between internal services. It was not confirmed that it had happened due to traffic overruns in connection with the free distribution of burritos from Chipotle Mexican Grill in honor of Halloween.

Technical malfunctions significantly affected not only the user activity but also the platform's fortune. According to experts, the company lost about $1.6 billion in market cap in three days of downtime. There are 575 million shares of Roblox in circulation. By Monday, -1.55% of the total fell by 4%, but then grew slightly and closed down 3.4% at $81.14. CEO David Baszucki has promised to release an internal investigation report. However, to date, these details are still missing.

Over the last quarter, according to the company's official report, the platform brought developers more than $451 with an indicator of active users of about 46 million daily. Simple mathematical calculations show that the service lost about $15 million in income in three days of downtime. Of course, the temporary suspension of the platform could not but affect those members who receive revenue from their content offered within the game.

By the way, as is usually the case, this technical malfunction has benefited such competing services as Among Us and Minecraft. There, the indicators of the total time spent in the game increased by 6% and 2%, respectively. Even Twitch saw an 8% increase in user activity. How did the Roblox outage affect you? Have you moved on to competitors? Or did you take the opportunity and enjoy Halloween without video games?