Rovio: Revolutionizing Mobile Games with Angry Birds and its Acquisition by SEGA

Rovio: a historic player in mobile games

In the past, mobile games in the West mainly focused on simple touch-based mechanics. Games like Fruit Ninja, where you had to quickly slice fruit, or Temple Run gained popularity at a rapid pace. Alongside classic game ports like Sonic, we saw the emergence of major game franchises.

Candy Crush Soda Saga, Clash Royale, Jetpack Joyride, Plague Inc., Pokémon GO, and Cut the Rope are just a few examples. Today, there are thousands of mobile games available, some of which are also playable on PC and consoles. However, in 2009, a furious little bird from Finland caused a massive sensation. This bird was Angry Birds, developed by Rovio, a company that was founded in 2003.

The gameplay of Angry Birds is simple: players launch various types of birds at structures occupied by pigs. By strategically hitting the right spots, players can collapse the structures and eliminate the enemies. The Angry Birds franchise has expanded into games, movies, stuffed animals, TV series, and even amusement parks.

However, in 2014, Rovio faced a significant downturn in its revenue. Simply having Angry Birds was no longer enough, and the company had to lay off a third of its workforce. Nevertheless, Rovio has managed to bounce back since its IPO in 2017 by reevaluating its business model while still leveraging its popular game franchise.

Sonic and Red, same fight!

Now let’s fast forward to April 2023. During this month, Rovio’s executives announced that the company would be acquired by SEGA for 706 million euros. This was a significant announcement for the Japanese publisher, as it aimed to strengthen its presence in the mobile and multimedia sectors.

Rovio accepted SEGA’s acquisition proposal, making it a non-hostile takeover. The finalization of the acquisition was scheduled for the third quarter, pending approval from regulators. Luckily, the regulators had no objections, and on September 18, SEGA joyfully posted a tweet about the acquisition, a few weeks ahead of schedule.

We can expect that Angry Birds and Sonic will dominate the mobile gaming market, with SEGA promoting their respective iconic characters. Furthermore, Angry Birds will have the opportunity to expand onto new platforms.

The 450 employees of Rovio are now part of SEGA’s workforce, and SEGA has gained a new office in Europe. The question remains as to how SEGA will capitalize on Rovio’s expertise and history, and how Angry Birds will fit into the overall SEGA brand. Only time will tell, which may be a matter of months or years.