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Jake

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The official second installment of Angry Birds has failed to generate as much money as the company hoped for. Now as the revenue stream will not be as strong as projected they have to cut costs to keep company afloat and 270 workers must go. This shows how difficult F2P market is. Even with a strong brand like Angry Birds there is no guarantee of stellar success. 

The little I tried the game myself I have the feeling that it doesn't really talk to older gamers at least not in the same degree as Clash of Clans and the likes. It also doesn't seem to function as a kids game because the style has been made slightly more adult and the gameplay has few more complicated elements. Why would teenagers spend their little money to this game...

Seems like Rovio needs more titles to share the responsibility but looks like this new installment was needed as the original (as well as Star Wars version etc.) was losing steam.
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bestgamesstudios

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Reply with quote  #2 
incredible!  they had 270 workers for angry birds???
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Jake

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Most of the merchandising personnell have to go. They still try to keep the game development mostly unaffected. They will also halt the expansion of their activity park business. In essence one could say that this is going back to basics for them. Ironically enough this new installment and soon to be released animated movie would both bolster the merchandising division. Difficult choice, but obviously they are running out of money and funding so something had to be done.
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Martin

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Reply with quote  #4 
Wow, thats big news, 270 staff :s
But it felt to me like they were trying milk the Angry Birds IP with a bunch of titles recently - Angry Birds Go, Stella, Star Wars, Star Wars 2, Epic etc etc.

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Crichton333

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Reply with quote  #5 
Quote:
Originally Posted by bestgamesstudios
incredible!  they had 270 workers for angry birds???


LOL, just wow [smile] how many do they have total [smile] thats just crazy

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Grumpy

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Reply with quote  #6 
I haven't played it, but I've heard that it's really aggressively and poorly monetized. I've never liked the way they've done inApp purchases in Angry Birds (apart from selling zones). Too much focus on temporary power-ups, not enough focus on offering customisation, unlocks etc which would be more appropriate for their audience IMO.
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Jake

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Reply with quote  #7 
Martin, indeed their creativity seemed to be focused on everything else but IP development.

In games they became IP management company and they did everything like LEGO did.  Unfortunately those angry bird characters just don't seem to be memorable enough.

In merchandise they sprawled in everything and the pinnacle for me was when I was on a holiday in Taiwan (can't remember the town but in the mountains far from cities) and in my spa resort's game room there were Doraemon soft toy dispensers, which were filled with Angry Birds characters.

In theme parks they had cooperation with Finnish Lappset group that is a big designer and manufacturer of playground equipment. Angry Bird playground toys did not sell especially well... [tongue]

In learning solutions they have had some cooperation with companies in China and the goal was to develop whole new learning experience for elementary level schools. I have not heard anything concrete about this project.

From outside it looks like the company has seven dwarfs (with all their different personalities) as a management team and results are equally diverse.

Crichton333, they have almost 700 members in their staff.

Grumpy, spot on. Especially customisation would do really well.
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Jake

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Reply with quote  #8 
Angry Birds 2 was developed in their Stockholm (Sweden) offices. In the end of 2014 Stockholm office had a staff of 39 people. 

http://www.allabolag.se/5568873763/Rovio_Sweden_AB
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Voley

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Reply with quote  #9 
I don't understand how this is a working business model. You have couple of games, how the hell are you expecting them to pay for 1000+ personnel? Are you like microsoft or something? I bet there were a lot of people doing useless stuff. Why can't these companies keep personnel up to a hundred or something?

If I was doing that, I would have bare minimum of people.
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Martin

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Reply with quote  #10 
There's a ton of Angry Birds merchandies in China too. Its everywhere and Angry Birds images appear on everything. But I have no idea how much of that goes towards Rovio and how much is just a knock-off (stolen images).

To me it seems like big companies really lose control of what their staff do and there's so much inefficiency. This is just natural with large companies. That's why EA lets go like a 1000 employees every 3 years or so. There's just so many unneeded man-hours not going in to profit-making processes. 
I was in a meeting a couple of weeks ago and one of the UK guys was blown away when he visited a Chinese company and said "Wow, they have like 600 staff in just a few months, thats amazing". At first I was also impressed and wondered how they achieved this amazing number. Then about an hour after thinking about this I thought "Wow, I wonder how much money they are losing a day". That should have been my response in the meeting lol [smile]

Martin
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