Do startups that produce online and mobile games really have the makings of becoming huge companies?
It’s looking more doubtful than ever. It’s well-known that Zynga has had a very rough ride since going public. More recently we’ve seen a similar fate for Candy Crush maker King after its IPO.
Now we’re learning about what’s been going on at Angry Birds maker Rovio. Business Insider today reports that Rovio, which has grown to a staff of 800, has a new chief executive amid plummeting profits and virtually flat revenues. “The mobile games business is notoriously difficult: Games are essentially fads, and the Angry Birds fad is long over,” the article states.
In short: This is leading to lots of angry stock holders.
But will this actually be remembered when the next hit game comes along? Or will investors and executives again get caught up in the moment? Leave your thoughts in the comments below.