Gaming industry. Growing business. Tremendous markets. Game export is the hope of whole Finland. These have been the big headlines in the Finnish media since Rovio made its breakthrough with Angry Birds. A few years later Supercell was the one to break the news when the start-up company was sold with 1,1 billion euros.
International video game revenue is estimated to be €65,6B in 2014 so the market is huge. This may be a reason why so many companies have decided to concentrate on the video game industry. The revenue of mobile games is estimated to rise from €9,9B in 2013 to €17,7B in 2015. Even though the growth is rapid and massive, some companies have already faced troubles.
For Rovio the sky seemed to be limit, until October 2014, when they hit the limit and announced the bad news. 16 % of employees were fired. The news started a snowball effect. Suddenly an industry that produces “no commodities, only video games” had seen the other side of the coin. The side where growth opportunities were smaller than thought and the competition in the market was tighter.
Even though the ‘backbone’ of the Finnish gaming industry was hurt, the expectations and hopes on other mobile gaming companies didn’t change at all. Was this a good or a bad thing? Hopefully a good thing because otherwise there is a bubble coming. However, recent Slush meeting gathered the potential start-up companies and the investors. There the foreign investors actually invested in new Finnish mobile game companies with millions of euros. And more is to come – hopefully.
The industry attracts new entrepreneurs to try their wings and possibly make success stories. Why? Perhaps it’s easier to make a breakthrough in the gaming industry than in any other industries. Or maybe the business still has more potential to grow than it now seems to have. One thing is for sure. As long as the customers are happy and the games are trendy among them, it’s time for game companies to rise and shine.
Market size http://www.gartner.com/newsroom/id/2614915