The “LuoBuLeSi” app, a China-specific product Roblox launched in partnership with Chinese tech giant Tencent, was taken down in December, five months after it was released. The U.S. gaming platform said it would build another localized version of its platform and that the company is making “necessary investments,” including in “data architecture.” (Reuters)
Talking point: Roblox’s decision comes after LinkedIn’s and Yahoo’s exits from the country last year and amid a flurry of regulatory crackdowns on the private sector, including gaming, in China. The government’s freeze on new video game licences, which started in July last year, prompted mass layoffs in the gaming segments at larger firms such as TikTok owner ByteDance. Roblox, the US$50-billion online gaming company with a devoted pre-teen following, identified China as a major growth area in its IPO prospectus last year. However, its decision to brand itself as an educational platform has caught the attention of Chinese authorities. Meanwhile, Chinese regulators have also finalized rules that will take effect on March 1 governing the way companies use algorithms.