UGC Gaming Business Trends at UGCon
- 42 minutes ago
- 6 min read
Attending the first UGCon at Topgolf in Las Vegas last week reminded me of when I attended the second ever VidCon (video creator conference) 15 years ago in 2011. Both events had a casual and low key atmosphere where attendees could mingle and easily chat with whomever they wanted. They also each attracted talented and visionary leaders in their respective UGC spaces. Lastly, both events had a palpable sense of enthusiasm and excitement inherent to being at the center of a burgeoning ecosystem.
UGCon, put on by Makeshift, brought together roughly 200 people across Roblox, Fortnite, and Minecraft, including developers, investors, brand representatives, and executives from companies like Epic Games and Roblox itself. The conference's timing was deliberate, following on the heels of Licensing Expo, making it easy for a number of brand and entertainment executives to join. The result was a space filled with platform natives and industry professionals, all looking to get smarter about where UGC gaming is headed. Attendees traveled from across the US as well as England, Sweden, Germany, Vietnam, Korea, Japan, and beyond, a clear sign that this space is truly global.
The Night Before: a Special Max Power Gaming Dinner
For me UGCon began Wednesday night when I hosted a private dinner at a Luxor steakhouse with leaders from Voldex, Uplift Games, NASCAR, Moonbug, Ubisoft, Atlas Creative, Future Trash, and Blushcrush Studio, the team behind Dandy's World.
The dinner was sponsored by Oppenheimer, and I'm grateful to Martin Yang for partnering with me on it.
My takeaway from that room was that this community is working on massive projects that feel hidden in plain sight. Games like Dandy's World, Adopt Me, and Brookhaven have millions of deeply engaged players, yet many executives in gaming, entertainment, and advertising still don't fully recognize their scale and cultural influence. That relative anonymity will certainly disappear in the years to come. It's just a matter of time.
I'm hosting my next event in New York City on Tuesday, June 2nd, presented by Exclusible and supported by Think Influence. If you're in the space and want to join, register to attend HERE.
Top Developers are Building for Longevity
The most sophisticated teams in UGC gaming are no longer just building games. They're building IP. Investors and acquirers are increasingly looking for games that can become durable franchises with loyal audiences, strong retention, and the kind of brand identity that survives platform shifts.
This long-term view is also showing up at the platform level. Roblox recently shifted its discovery algorithm to prioritize 28-day retention over 7-day retention. I think these changes will have a real impact, pushing more creators to prioritize true longevity over flash-in-the-pan viral success.
It was interesting being at UGCon and hearing someone outside the Roblox ecosystem reference these Roblox algorithm changes. A veteran Minecraft creator told me that Roblox's push toward rewarding more durable games resonated deeply with how he thinks about building. Minecraft servers are designed to last years, not weeks like some Roblox games. The idea of cheap, disposable content optimized for short-term spikes runs counter to how Minecraft developers operate.
The fact that Roblox's algorithm is now moving in this new direction is something even Minecraft builders are paying attention to, and that cross-platform awareness tells me the best UGC gaming creators are watching what's happening across all platforms, not just their own.
M&A: It's Not Just About the Money
Dara Willoughby from Raine, a firm that invested in Voldex, offered one of the most interesting takes of the conference. When studios sell their game(s), it almost never comes down to money as the primary driver. More often it's developer burnout, wanting to be part of something bigger, or wanting to see their game reach a level they couldn't get to on their own.
Moonbug and Tencent were both on an M&A panel, even though (funnily enough) neither has actually acquired a game in this space. Moonbug has built some of the most successful children's franchises in the world through YouTube (CoComelon, Blippi), and they're looking at UGC gaming as the next frontier for that model. The challenge for them is finding the right games that have the potential to translate into major franchises with content and consumer products. They haven't found many available games that match that criteria. Tencent, meanwhile, is already an investor in Roblox and Epic Games, but sees additional opportunity in backing individual studios. The appetite for both companies to acquire is there, but the right targets are still emerging.
Relationships Before Deals
Daniel Ottenwalder from Tencent made an interesting point. He does not attend these conferences to close deals. Rather, he's there to build relationships, so that when an acquisition or investment opportunity emerges years from now, the trust is already there.
If you're serious about building something significant in UGC gaming, and you want to work with firms like Tencent or Raine someday, the time to start showing up and building trust is now.
Roblox is Attracting Creators from Other Platforms
One of the more interesting dynamics across both days was watching creators from Minecraft and Fortnite look at Roblox with genuine curiosity.
The Minecraft situation is particularly striking. The platform has roughly 400 approved creators who can publish experiences, but entry into the program is essentially referral-only now. The barrier to entry is high, creators operate largely without support or meaningful feedback from Microsoft, and veteran developers have learned to be self-sufficient out of necessity.
That situation stands in sharp contrast to Roblox, which is open to all interested creators. Multiple Minecraft creators commended Roblox for supporting its creators with resources, incubator programs, and structured support. Roblox's openness is a real competitive advantage, and it's drawing serious talent from other platforms.
As Alexander Lee from GamesBeat reported from the conference, Minecraft creators are actively seeking Roblox-style brand deals and see Matthew Ball's recent appointment as Xbox's Chief Strategy Officer as a potential opening for Microsoft to finally show up for its creator community the way Roblox has.
Safety and regulatory risk didn't emerge in most conversations at UGCon, but one moment stood out. A Minecraft developer mentioned that Roblox's recent safety improvements were something he was actively watching, and that those changes might influence his decision to start building on the platform. That's an interesting sign that Roblox's investment in that area is being noticed, not just by regulators and brands, but by the creators the platform most wants to attract.
Big Developers Want to Work Directly with Brands
One interesting panel surfaced a growing sentiment among top UGC game developers. They want to work with brands directly, cutting out the agencies that currently act as intermediaries. The argument for streamlining that relationship is fair. Fewer layers means faster decisions, clearer communication, and deals that are more likely to reflect what both sides want.
But I'd push back on how broadly that applies because the developers making that case on stage were from top studios such as Voldex and Good Gamers. These are serious, professionally run organizations with top games on Roblox and Fortnite respectively. They have the polished, brand-facing staff to manage those relationships well. Most developer teams in this nascent space don't. They're small, and they don't have someone in house who knows how to navigate a brand partnership from initial conversation to final deliverables and reporting.
The best studios should absolutely work with brands directly. But most developers, especially smaller and less experienced teams, are better served by working with agencies that can act as a bridge between them and brands
The Industry is Hungry for Better Information & Insights
One thing I heard consistently from brands and practitioners is how hard it is to keep up with everything happening in this space. The ecosystem moves fast. Platform algorithm changes, new monetization models, trends emerging, M&A activity, it's a lot to track, and a lot to make sense of.
That's exactly the problem I'm building toward with a market intelligence platform designed to help companies cut through the noise and understand what's happening and why it matters. If you'd like to learn more about this product launching soon in a private beta, get in touch with me.
Final Thought: I've Seen This Before
Reflecting on UGCon, I keep back to that VidCon memory from 2011. At the time, I knew I was onto something big that would only get bigger. The very next year, VidCon moved into the massive Anaheim Convention Center, creators were getting chased by screaming fans, and what had felt like a passionate niche was suddenly impossible to ignore.
UGCon feels very similar.
But this conference clarified something for me I didn't expect: I've been thinking too small. My focus has been on Roblox. But spending two days in deep conversation with serious builders across Minecraft and Fortnite made the overall scale of this opportunity much clearer. These are massive platforms with enormous audiences and, frankly, significant headroom to grow further, especially if they do a better job of supporting current and future creators the way Roblox has.
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Stephen Dypiangco is one the world’s leading experts on the topic of Roblox and brands. He has advised global companies on their Roblox strategies, including BBC Studios, Paramount, and Takara Tomy.
With 120+ articles published about Roblox and a following of over 14,000 across LinkedIn and his industry leading Max Power Gaming newsletter, he is widely regarded by gaming industry executives and investors as a trusted resource.
Stephen is building the premiere network of Roblox professionals to help this emerging sector connect and scale through his unique blend of relevant content and community events.
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