2023-04-17 19:52:41
The hedgehog and the birds: the formula resembles a title of a fable by La Fontaine. It sums up well the future acquisition of the video game studio Rovio by the publisher Sega, respectively responsible for the eponymous volatile of the video game. Angry Birds and the hedgehog Sonic, 1990s icon turned movie star. A friendly takeover offer for the Finnish mobile game specialist by the historic Japanese video game player was formalized on Monday April 17 in a joint statement : it amounts to 706 million euros.
“Sega’s long-term goal is to accelerate its growth in the industry. [du jeu vidéo mobile] », announced Haruki Satomi, Chairman and CEO of Sega Sammy Holdings Group. The company, whose annual turnover was approximately 2.6 billion euros in 2022, wishes to diversify its catalog: for the moment, its flagship licenses, such as Sonicrole-playing Persona et Yakuza (recently renamed Like a Dragon), strategy games Total War or management like Football Manager are mainly acclaimed on console or PC.
Sega thus demonstrates its interest in the know-how and technologies developed by Rovio in the field of “online operating services”, a category of games generally offered for free download but profitable over time thanks to the sale of optional bonuses or paid updates.
This economic model allowed video games on smartphones to become the industry’s leading market in the 2010s. In 2022, its turnover was 84 billion euros worldwide, according to the report of the specialized firm Newzoocompared to 47 billion euros for console games and 35 billion for PC games.
A historical player in mobile games
Rovio has twenty years of experience in the field of mobile gaming. After a few years working for Nokia, another Finnish company, Rovio flew on its own from 2009, betting on the personal project of two of its employees, with an unlikely pitch: that of colorful birds fighting against green pigs who have stole their eggs. The success ofAngry Birds propelled the team to the forefront of a sector then in full expansion: that of video games on smartphones. Initially offered for less than one euro, it transformed the company of a dozen employees into a multinational established in five countries and counting five hundred employees. In 2012, Angry Birds is the first mobile game to surpass one billion downloads, according to the Guinness des records.
After a dazzling takeoff, however, Rovio is experiencing turbulence. First, the company is forced to abandon the economic model of paid games to adapt to the completely free imposed by its rivals, in particular Clash of Clans et Candy Crush Saga. Then, it suffers from an all-out diversification, risking launching derivative products and even amusement parks which cost it dearly.
Over the years, the former champion takes the lead in the wing. The mobile game ecosystem, admittedly constantly growing, is close to saturation, and Rovio’s turnover remains just stable – it was 317.7 million euros in 2022.
Two companies in search of renewal
“Many investors and observers criticize Rovio for not having been able to renew itself”, notes analyst George Jijiashvili, specialist in the video game industry for the British strategic analysis firm Omdia. By passing into the bosom of Sega, the Finnish company can hope to break the glass ceiling with which its growth is confronted, by exploiting other emblematic licenses.
The hedgehog and the birds also have some similar ideas behind their heads. Rovio and Sega have been actively working in recent years to bring the adventures of their iconic characters to the big and small screen. Sonic and the Angry Birds have each been the subject of two successful film adaptations. These films were successful enough for a third episode of each of the licenses to be started. The characters have also been transposed into various animated series. “After the success of The Last of Us and of Super Mario Bros. the movies, adaptations are popular. The phenomenon could be as important in the 2020s as superhero adaptations were in the 2010s.considers George Jijiashvili.
Cinema and mobile games are a new development for Sega. After having to abandon its role as a manufacturer of video game consoles in 2001, the company was forced in 2022 to close its arcades, which historically constituted its core business. However, it continues to develop and publish video games for consoles, PCs and arcade terminals.
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