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Angry Birds Developer Rovio Reports First Major Profit Decline in 2014

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Finnish developer Rovio, creator of the Angry Birds games and all of the subsequent spin-offs, yesterday reported the company's first big decline in profits since the original Angry Birds game launched in 2009 (via VentureBeat).

Though the company's mobile gaming business did see a slight 16 percent rise in revenue, a huge drop in Rovio's licensing business, which includes the various toys, t-shirts, and action figures related to its games, was the true culprit of the company's decline last year. Not to mention other mega-hit franchises, like Candy Crush Saga, slowly taking the once-dominant spotlight of Angry Birds.

The first official image from the upcoming Angry Birds movie.

The company's revenue dropped to EUR158.3 million ($170 million) in 2014, from EUR173.5 million ($185.6 million) in 2013. Likewise, Rovio's operating profit also fell last year to EUR10 million from EUR36.5 million in 2013 and EUR76.8 million in 2012. Rovio CEO Pekka Rantala hopes a steady release of new games and a renewed focus on advertising will pivot the company in the right direction for 2015.
"2014 results show that steps in the game portfolio, free to play competency building and advertising are going in the right direction. I am confident that with new simplified organisation and clearer vision, we will be back to the path of growth in 2015," said Pekka Rantala, who took over as chief executive last fall, in a statement.
Rovio launched six new games in 2014, no doubt helping to bump up its mobile gaming revenue, with more than 600 million new game downloads for the company. It's also already launched two new games in 2015, Jelly Jam and Angry Birds Stella POP!, which Rantala hopes will keep the brand's momentum going through the first half of 2015.

Although it's not to be released until the summer of 2016, Rantala also points to the buzz surrounding the Angry Birds movie as a boon to the company's wilting licensing business. The company will produce the movie, which is set to star Jason Sudeikis, Josh Gad, Maya Rudolph, and Peter Dinklage.

Rovio no doubt hopes for the film to pick up the slack where Angry Birds Toons, Rovio's 2013-launched animated kids TV show, has failed to increase the company's licensing business year-over-year. Rantala notes that the film already has received "very positive reactions from major retail and license partners as well as from consumer focus groups", which he and the company predict will translate into booming licensing deals in the coming years.

Article Link: Angry Birds Developer Rovio Reports First Major Profit Decline in 2014
 

tentales

macrumors 6502a
Dec 6, 2010
771
1,184
too many ads

I played it in 2013, but the fad gets old, especially when the newest version of the original Angry Birds gets polluted with ads and in-app purchases. I PAID for the game not to get inundated with ads. So no wonder profits are down.
 
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2457282

Suspended
Dec 6, 2012
3,327
3,014
The game is the same as it was in the beginning, just changing scenery. Bottom line is that after a while it got old. I haven't played this in several years. This may still be fun for kids, I guess. But the toys and other shoot offs never really hit it with my family or anyone I know.
 
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Klae17

macrumors 65816
Jul 15, 2011
1,101
1,258
I played it in 2013, but the fad gets old, especially when the newest version of the original Angry Birds gets polluted with ads and in-app purchases. I PAID for the game not to get inundated with ads. So no wonder profits are down.

If you read the article you would know that the decline was from licensing deals expiring. In app purchases makes way more money than one time buys, just looks at Candy Crush. If it weren't for iAP Rovio would probably be in a lot more trouble.
 
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lincolntran

macrumors 6502a
Jan 18, 2010
843
471
I hate all these companies and their schemes. Polluting the game with ad and in-app purchases while label the game as "free"
 
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sshambles

macrumors 6502a
Oct 19, 2005
730
1,036
Australia
Big deal. There's only so many bird games that people are willing to a) play and b) pay for.

Move onto the next popular app. Angry Birds are so 2000 and late. :)
 
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breather

macrumors regular
Jan 26, 2011
148
455
Sweden
On facebook

I only play the one on Facebook, it´s more fun to compete with friends and such...
 
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trainwrecka

macrumors 6502
Apr 24, 2007
465
455
Earth
I hate all these companies and their schemes. Polluting the game with ad and in-app purchases while label the game as "free"

If companies priced games what they were worth, they would never sell enough to stay afloat. Sadly, this is the state of things.
 
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iDento

macrumors 6502a
Sep 8, 2011
553
714
iCloud Servers
Rovio, just like Zynga, they need more creative ideas on how to make games people enjoy and stop repeating themselves.
 
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roadbloc

macrumors G3
Aug 24, 2009
8,784
213
UK
Not surprising. People got bored of the same game in a different hat every release.
 
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ghostface147

macrumors 68040
May 28, 2008
3,346
3,026
I just enable airplane mode for the ads not to pop-up and bother me. I used to be hardcore about getting three stars and everything, but I just beat the levels now. Nothing more. They got too greedy. What really pissed me off what when they updated Angry Birds Go and it took away some of the karts that I spent a lot of time upgrading (not monetarily) to max them out. Now they gave you crap ones and you have to start all over.
 
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nouveau-apple

macrumors 6502a
Sep 29, 2014
807
97
#GOOD.

People are tired of Angry Birds. Come up with something new. The newest Stella game copied directly from Panda Pop.

Next year is going to be even more of a decline.
 
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iSee

macrumors 68040
Oct 25, 2004
3,526
253
They should focus on making great game experiences, not growth itself.

They are in a great position with the resources to create and market new games. Strong growth will naturally follow if they do that. Chasing growth by attempting to monetize each pixel rendered at the expense of game play is going to fail badly and rather quickly.
 
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nburwell

macrumors 601
May 6, 2008
4,896
1,811
DE
I can't say I'm surprised. I played Angry Birds when it was originally released, but for me, the game got old pretty fast. I haven't had the app on my phone since. So the fact that Rovio reported a major profit decline last year does not come as a surprise.
 
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4jasontv

macrumors 68040
Jul 31, 2011
3,421
3,538
#GOOD.

People are tired of Angry Birds. Come up with something new. The newest Stella game copied directly from Panda Pop.

Next year is going to be even more of a decline.

Never played Panda Pop, but back in 1996 Snood was all the rage.

My issue with Angry Birds in the sheer number of apps. I'd buy them all if they were all loaded in one app. Also, I had Angry Birds and Angry Birds Seasons 100% completed, with 3 stars per level, until I got a new iPad and had to start over. Haven't really played since.
 
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swarmster

macrumors 6502a
Jun 1, 2004
623
89
"...the company's first big decline in profits since the original Angry Birds game launched in 2009"

...

"Rovio's operating profit also fell last year to EUR10 million from EUR36.5 million in 2013 and EUR76.8 million in 2012.

Seems like 76.8m --> 36.5m (40.3m) would be considered a big decline in profits to me. Even compared to 36.5m --> 10m (26.5m).
 
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TheWelshBoyo

macrumors 6502
Dec 14, 2008
270
35
Cardiff, Wales
I hate all these companies and their schemes. Polluting the game with ad and in-app purchases while label the game as "free"

Agreed. Long may these profit declines continue!
When apps become infested with ads and microtransactions, they utterly destroy any positive user experience. Everything becomes about the up-sell.
I wish we could go back to a time before in-app purchases in free apps became a thing.

----------

Rovio, just like Zynga, they need more creative ideas on how to make games people enjoy and stop repeating themselves.

I'd rather the two just went out of business. Zynga first though, preferably.
 
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0815

macrumors 68000
Jul 9, 2010
1,745
828
here and there but not over there
Guess you can milk the same idea only so many times ....

The had back in the days an original game (sort of), but than they kept release 'new' games that were not new but the same old with different graphics. I was surprised that it was a success for so long. Everything else they tried failed.
 
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flat five

macrumors 603
Feb 6, 2007
5,577
2,654
newyorkcity
i quit playing when starwars added the master levels in which they basically expect you to buy birds in order to have fun with it.

jack the price up and lessen the experience? lame.
 
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