Rovio Entertainment, the mastermind behind the globally acclaimed Angry Birds franchise, has startled the gaming community with the decision to close its London studio. Despite a remarkable financial year, the closure reflects strategic shifts within the company.
In 2017, Rovio celebrated an unprecedented financial year, witnessing a 17% revenue surge amounting to €73.9 million in the final quarter. The company’s operating profit doubled to €10.4 million, marking a significant achievement. These figures, however, fell short of market expectations set at €77.3 million, indicating a slight deviation from anticipated growth.
CEO Kati Levoranta cited heightened market competition as a key factor in the decision-making process. The closure aligns with Rovio’s new strategy aimed at enhancing game development and operations to contend with industry challenges.
Rovio remains committed to accelerating its growth trajectory. The focus remains on strengthening its live games, exemplified by the success of Angry Birds 2, which saw its gross bookings escalate by 83% in 2017.
CEO Levoranta elaborated on the need for ongoing development and renewal to sustain competitive advantage. This involves not only enhancing existing popular games but also investing in new gaming experiences.
Rovio’s strategic pivot underscores a focus on long-term success and sustainability. Despite the setback, the company is resolved to strengthen its market position and leverage its strong game portfolio.
The closure of Rovio’s London studio marks the end of a significant chapter for the company. However, it also represents an opportunity for strategic refinement and renewed focus on core competencies, setting the stage for future successes.
Rovio’s journey illustrates the complexities of sustaining growth in the gaming industry. The London studio’s closure, while unfortunate, aligns with a strategy poised for future competitiveness. Through innovation and adaptation, Rovio remains a key player, looking to the future with optimism.