Investment firm Double Black Capital details how user-generated game platforms — primarily Roblox, but also Minecraft and UEFN — are attracting serious capital from private equity, mid-market publishers, and eventually major AAA publishers. The economics are compelling: games built for under $50K generating $10M+ annually, with deal timelines of one to two months versus six to eight in traditional gaming. However, the space has unique challenges: Roblox takes 70% of revenue, sellers are often teenagers with no legal infrastructure, and earnout structures must be compressed to weeks rather than years. Buyers typically acquire the game rather than the studio, and native developers rarely need investor resources. Double Black predicts a major AAA publisher acquisition of a Roblox studio is imminent.
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