In just under two months, a Roblox user-created game called Grow a Garden has become a massive hit.

Roblox is diversifying its revenue streams into areas like real-world commerce and ads as it aims to capture 10% of the $180 billion gaming market.

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Roblox China was once full of promise. Since its localized platform, which is a joint effort with Tencent, abruptly halted operation nearly two years ago, the company has been quiet about its standing ...