Last year turned out to be a bad one for Rovio, the makers of Angry Birds. The privately-owned Finnish company saw its revenue drop more than 8% and had to cut its workforce in response to dipping merchandise sales and the falling popularity of its main brand.
From the Wall Street Journal:
Rovio’s problems also stem in part from failing to adopt the “freemium” model in which games are free at first but then charge users for various in-game upgrades. Instead, Rovio has mostly stuck to charging customers one initial price for fully-featured games.
While it’s been a tough year for Rovio, the overall mobile gaming market is healthier than ever. It’s so robust, in fact, that earlier this week old-school gaming giant Nintendo decided to start working on mobile platforms.