Roblox buys digital avatar startup Loom.ai, but is it too late?

Loom.ai, the San Francisco-based startup founded by LucasFilm and DreamWorks alumni, was recently acquired by gaming platform Roblox. The intention of purchasing this company is an interesting play at ‘accelerating the development of next-generation avatars’, according to the company’s press release. Roblox is a company that has focused on simple avatars in the past, tossing the quest for realism to the wayside with more of their attention being paid to elements like gameplay or content moderation. However, Roblox announced that the partnership between themselves and Loom.ai is intended to create a gaming experience that will feel like a “life-like, interactive method.”

This shift in interest towards creating more realistic human avatars may be a response to the increasing interest in and activity on the Roblox platform due to COVID, and its ascending prominence as a general online hub. Roblox organized a number of digital live shows in 2020, such as One World: Collectively At Home, and a Lil Nas X concert in November, which attracted over 33 million individuals. This increased emphasis on Roblox’s relevance as a cultural site as well as a gaming platform casts realism in user avatars in a new light: more abstract or cartoonish depictions of users may play for a gaming audience, but general users are likely to find more expressive and customizable digital representations more appealing.

Is Roblox Behind the Curve?

While Roblox has made a statement by purchasing a digital avatar startup called Loom.ai, what might actually be looming on their future is being overshadowed by companies that have been quicker on the uptake. Bandai Namco, for example, was quicker to snap up a company focused singularly on creating digital avatars with dynamic expressions: Genies. Bandai Namco has invested heavily in helping the Los Angeles-based company establish a presence in Japan, and will doubtless be leveraging their impact by building experiences that synthesize their own video game and toy industry experience with Genies’ talent for creating avatars in an interesting and eye-catching way, as well as drawing the attention of celebrities, athletes, and other public figures such as Justin Bieber, Rihanna, and Shawn Mendes. Bandai’s investment has also covered the company’s growing budget for technology and development. Can Roblox and Loom.ai play catch-up to partnerships like Bandai Namco and Genies?

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Source: https://fintechzoom.com/fintech_news_roblox/roblox-purchases-digital-avatar-firm-loom-ai/