Indignant Birds’ falling income present the perils of being a one-hit marvel
The dangerous information for Rovio, the corporate that makes Indignant Birds, is that gaming gross sales have been down barely over final yr. The more severe information? The personal firm now has 300 extra staff, which means it made lower than half the cash it did in 2012. Nonetheless, Rovio claims it is not fearful about falling income, which have been eaten up partially by a brand new animation studio, theme park offers and a merchandising arm. The latter division is undoubtedly a hit, with plush toys and different shopper merchandise now accounting for almost half the corporate’s gross sales.
However the different new ventures stay a query mark, because the Indignant Birds film is not scheduled to reach till 2016, for example. That leaves gaming to hold the remainder of the load, and the information there’s a downer. Regardless of having launched Indignant Birds Star Wars II and different properties in 2013, the corporate truly made much less on video games than the yr earlier than. To counter that, Rovio just lately launched freemium options like in-recreation purchases, which may become profitable however are likely to alienate players. Nevertheless, it stays to be seen if that may increase Rovio’s earnings. Just like the animation studio and different current selections, we’ll possible have to attend till subsequent yr to seek out out.
The WSJ has one other actuality examine, too. It has proven that Rovio’s progress is critically lagging behind others — not solely the large fish like King, the maker of Sweet Crush Saga, but in addition different, far much less skilled Nordic recreation devs. Come to think about it, all of those outfits may need to take note of Rovio’s present plight. Given shopper consideration spans, counting on a small variety of gaming properties is usually a dangerous technique.