Tag: rovio Page 1 of 2

Barcelona, here we come (once more)

On 10/02/2016

It is February, we’re still hanging in there, so we will again be descending upon that magnificent city in Catalunya that is Barcelona (which, of course, is that little bit less appealing because, together with us, there will be a ton of other mobile industry folks in town, so that taxis are hard to get, hotels hard to afford, and parties hard to get into, but, hey…). Because it is the week of Mobile World Congress…

This year, I have the great honour to moderate a high-octane panel at the MMIX portion of the Mobile World Congress on a topic that I could call “told you so”. Namely, we will be discussing “Games: the new destination for brands.” I will be joined by some super-cool names in the (pun/no-pun intended) game, namely:

Wilhelm Taht, Head of Games at Rovio;
Teemu Huuhtanen, CEO of Next Games (of “Walking Dead” fame);
Ronny Scherer from LEGO (yes, those guys).

Alas, that is of course not enough. On the very same day and only a short taxi ride down the road, I will have the great pleasure to delivering a keynote at the terrific 4YFN (that is short for “Four Years From Now”) conference, the uber-cool entrepreneurship conference that was the ugly duckling of its big sibling MWC but is soon catching up in size (and has, of course, overtaking MWC in terms of cutting edge ages ago). I will be keynoting with a spotlight on the education sector, urging people to “Change the World: One Trillion Dollar Market at a Time.”

Following my keynote at 4YFN will be a terrific panel on the hot trends in EdTech. It will be moderated by the CEO of Emerge Education (Europe’s leading EdTech accelerator where I am a Venture Partner) and participants will be Jesse Lozano (CEO of Pi-Top), Mads Holmen (CEO of Bibblio), Diego Olchese (CEO of Crehana) and Tom Hatton (CEO of RefMe). Definitely try to attend that one! It highlights the great work Emerge Education is doing and will also expose you to some of the brightest young CEO’s in the space, all of which passionate young entrepreneurs who have chosen to go where they can effect change (rather than puttering about with the 47th something-something-platform-SaaS-something play).

If you’re around, join me for those. It should be great fun! 🙂

[Disclaimer: I am a Venture Partner at Emerge Education, an investor in Pi-Top and an investor in and Chairman of Bibblio].

Mobile Gaming today: about whales, self-publishing and the like…

By Volker

On 29/08/2013

In Android, Apple, Apps, Carriers, Games, OEM

Didn’t the world change and quickly? Only a few years ago, mobile games worked like a supermarket: if you have shelf-space, you rule. The early kings of mobile gaming 1.0 (which many users today won’t even know about) were the ones that “owned” the relationships with mobile operators (or carriers if you prefer that word), OEM and the like. Those relationships guaranteed that you would be in front of consumers. Those of your competitors who didn’t? Well, tough luck. Today, the picture is very different. There were a few waves since those early days: the Wild West days of iOS and Android (which didn’t happen simultaneously but with similar patterns), the rise and fall of the Zynga empire (and folks who thought that that approach would cure all [business] evils of gaming and, in its latest pattern, the rise of Supercell, Kabam and King and the scratching of heads (and lay-offs of people) in a lot of other gaming outfits.

So what’s this all about then? Now, I won’t be able to offer you the full Monty in just one small blog post (it’s bloody late already) but there are a few pointers that show both the opportunities but also the pitfalls of the whole thing.

Fun Matters

Ilkka Paananen is the CEO of Supercell who are, arguably, the undisputed money-spinners these days. $2.4m/day is their benchmark, and that was a while back. In Q1/2013, they made $179m in revenues and $109m in operating profits (or so says the FT). Their two (!) games ride comfortably in the top-5 of the top-grossing charts of Apple all around the world, sometimes #1 and #2, sometimes #2 and #4 but never far off… When asked, Ilkka (who is as nice a person as you’ll ever meet) will always tell you that fun is what matters first and foremost (and I reckon this is what young master Pinkus wishes he had known earlier…). Ilkka managed to combine a dream of the free-wheeling nature of the likes of Valve, Inc. with the experience he gained in running as tight a ship as Digital Chocolate who, from the olden days of mobile gaming, were amongst the ones who had perfected the tightly-strung mastery of processes and engines. The result were – now famously – a number of canned projects plus two of the most profitable games (on an ROI basis) produced ever.

Alas, Ilkka will tell you that fun matters. If your game is rubbish and no fun, no one will like it, at least not longer term. Some earlier appstore succresses might have wanted to take note… It is an important bit to remember though: games are part of the entertainment side of things. And entertainment is about fun. No fun = no (long-term) success. There is only so much conning you can do…

Marketing is Part of Design

In the olden days, you had developers and suits. The former had grand ideas and the latter were a pain in the rearside. The success of a game always was due to the former and the success was always claimed by the latter. Now though, even the geekiest of developers has realized that you need to market efficiently if you want to be successful (which also means that your company has a chance of survival). Here’s a post you should read in this respect (it is a bit patronizing but there is a lot of good – if harsh – insight there nonetheless).

Building Brands is Cool (and Hard)

So, let’s go and build a brand, right? Because then we can replicate things, right? I mean, Rovio did this with Angry Birds, right? Yes, they did. How many others do you know who did? Not very many, right? Because, you know, it is not easy. Many tried (and are trying). Many see some traction. None I know of have had counterfeited bobble hats sold in San Francisco so far (yes, there are hand-knitted Angry Birds beanies on sale every weekend at the farmers market at the Ferry Terminal in SF! No, I haven’t seen beanies of the Cut-the-Rope frog yet…).

If you can get it right (and there is some magic (and hard work required), building an entertainment brand is insanely rewarding (just ask Walt Disney, George Lucas, Stan Lee, etc.). However, it is also very hard to do. And it is not for the faint of heart. So think twice… Oh, and hire the right people (two of Rovio’s rockstars just started his own thing in this realm. Go, Andrew!).

Those Bloody Whales

There was a time when only one-legged near-pirates hunted whales. Nowadays every game developer and their dogs (or cats or rats or pet hedgehogs do). According to Forbes, here’s (well, below) is why. Those are the folks who bring in the money. By my reckoning, the numbers Forbes calls out are not actually the industry benchmark but – perhaps – an averaged out number. This means that, if you’re good at what you do, you should be pulling in a lot more than what their article has you believe you should. And that is something that can be a little daunting. So, kids, there goes your easy career in game development…

Before I link to this Forbes thing then: it is not easy, mind the fun, get some kudos to them suits and be in for the ride… 😉

Here’s the Forbes article (from which I copied the infographic below and where you can get the fully scalable version).

Angry Birds Or Wings of Distribution

By Volker

On 15/03/2013

In Games

A lot has been written and said about the “gaming” phenomenon that is Angry Birds and the meteoric rise of its maker, Rovio, from Finnish minion to a powerhouse that it is today: 1.7 billion people can be reached, by my own back-of-the-envelope calculations, there will be on average (!) more than one Angry Birds game installed on every iPhone, etc, etc. It claims more than 263m monthly active users and has a YouTube channel that boasts more than 1 billion views (and which is, funnily enough, still run by “Rovio Mobile” rather than “Rovio Entertainment”). As of late, they also are their own ad agency.

More Than a Game

However, whoever thinks that Angry Birds is just the Crazy Frog of the smartphone age, think again: The company was astonishingly quick to turn its games into a lifestyle brand. And it does so with a refreshing chuzpe and gusto: It has announced a feature film. Now, this many have done (or tried). However, Rovio was not content to flog a license to one of the big studios. Oh, no. It hired top talent itself: John Cohen (“Despicable Me”) and David Maisel (“Iron Man”) joined and Rovio will produce the whole thing itself. Lock, stock and barrel.

The challenge for branching out in other verticals used to be distribution: how on earth will you get your movie into cinemas? If you don’t launch on 6,000+ screens in the US, you are not a AAA release (which is certainly what Rovio is after). But then, the same was said on theme parks (there are now more than 20 of those), soft drinks (Rovio outsells Coke and Pepsi in Finland and rolls out the drinks across other countries quickly) or merchandise (yes, you can not only find them on pop-up stalls outside the Ferry Building in SF but also in Toys’R’Us). You can – of course – also get an Angry Birds pre-paid debit card!

And they did it (well, most of it) entirely on their own.

Angry Birds Toons: Widest Reach Ever – On Day 1

Now then, last week, the birds descended unto Austin for the annual digital bonanza that is SXSW and announced Angry Birds Toons, their new animated series. They also announced how they will distribute. And this caused a few gasps (and probably red ears in and around Hollywood)…

They did a few traditional syndication deals in Australia, India, France, Germany, Brazil, Norway, Finland, Indonesia, Korea, Ukraine, Chile, etc. But the big things is this: because, you know, they’ll push it down the pipe to their entire install base. I reckon this will make them the most widely distributed animated series anywhere in the world. Bar none. Instantly. I bet some network execs get sweaty palms when calculating the data that will hit their networks…

Direct Reach

And this is why Angry Birds is a lot more than a gaming phenomenon: Rovio has a direct channel to more consumers in the world that anyone I can think of. What if Coca Cola, Disney, GM, the NFL, GE, Exxon, whoever would want to speak to their fans directly? Big campaigns, many millions of ad dollars, no direct channel back to gather feedback – unless you count their respective Facebook pages and Twitter accounts but, hey, those are a lot smaller than that and, most importantly, they ride on someone else’s platform where they compete with a ton of other brands, pictures of kittens, babies and snow and a plethora of status updates. Rovio simply adds a button to all those games and keeps expanding its grasp of user attention.

Very impressive indeed, my friends!

Amazing Alex? Really amazing?

By Volker

On 14/07/2012

In Apps, Games

Now, to get this out of the way: I am a Rovio fan, and I have been for much, much, much longer than most. I have published their very first game – Darkest Fear – and I have published a few of their pre-Angry Birds titles after that. So do not accuse me of Rovio-phobia; there is none…

So, I hope you will understand that I was pretty excited when they announced their first post-Angry Birds title, Amazing Alex. Alas, am I excited? No, not really. Now, don’t get me wrong: it is a beautifully balanced, nicely polished game. Nothing wrong with that. But is it really something über-special? As in Angry-birds-we-will-show-them-special? Erm, I think not.

You say though that they are on #1 in 30+ countries and on #2 in 30+ more (or so the Mighty Eagle tells me over Facebook and Twitter). You say that this amounts to an astonishing success, an impeccable launch. And, yes, I agree. But, aside of the impressive launch power and impeccable marketing and all, is it great? I think not. And, yes, I am disappointed. Rovio has been one of my favourite studios, long before Angry Birds. It is why I have been behind them with previous games, why I tried to push them when their talent had not been amplified by their awesome and unprecedented success of Angry Birds. But… Someone who wants to replicate Walt Disney needs to do better. Folks, you have to follow Mickey with Donald. Is Alex Donald? I think not…

I do hope – sincerely – that they will pull it of. Not because my day job at RIM requires me to stay in their good books, but because I believe that the birth of a new creative powerhouse outside of old-school Hollywood is a seriously good sign for the world, and last but not least because Michael, Peter, Andrew et al are really good people! But I do not think Alex is nearly as amazing as Donald Duck is (or Bugs Bunny for that matter) and I am hoping they will bring it with future iterations!

Come on, my Mighty Eagle and other birds: we really could do with a new Disney; it’s been way too long…

The (Big) Business of Mobile Games [Infographic]

By Volker

On 23/04/2012

In Games

OK, this suffering a little from the usual simplification inherent to this seemingly favourite pastime of many, namely of creating infographics, but I thought there were a few interesting bits in there nonetheless, so enjoy… 🙂

Angry Birds fly ever higher…

By Volker

On 04/01/2012

In Games

A fresh new year and it is time for the latest numbers of the Angry Birds phenomenon, and they are impressive indeed!

Most mobile game developers would be quite happy if their game would clock more than 5m downloads. Hell, they would probably throw a massive office party for that! Well, Rovio made more than that in a day (OK, it was Christmas Day): 6.5m copies of the various Angry Birds games (paid and free) were downloaded on 25 December 2011 alone. Woah!

The formidable Stuart Dredge treats us to some more background on Angry Birds. To cut it short: by December 2011, Angry Birds had more than 600m downloads. That is more downloads than people living in all of North America – all the way from Alaska down to Panama! About 1/3 of those are monthly active, 1/8 daily.

Given that they also make money (seemingly nearing $100m in revenues) and not only from games but from selling 1m toys and 1m t-shirts per month, too, it is perhaps understandable that they are said to have rejected a $2.25bn acquisition offer by Nasdaq newbies Zynga. I can understand that they may not have been too thrilled to work under the hard-charging (according to some, too hard-charging) “CityVille-ains” but I still wonder if that would not have been a worthwhile cash-in (though it would arguably have been a share deal and Pincus only knows what on which valuation of Zynga that would have been based!).

Rovio has great plans, they are hiring senior entertainment talent (Dave Maisel of Marvel fame for instance), they are diversifying quickly, they execute with adorable flawlessness. But they have not yet shown that they are capable of repeating the creative spark with equal vigour and verve. On the one hand, they are a very, very talented bunch (I published games by them previously: great content and lots of polish). And they have some serious reach now, which gets them a lot of promotional punch. They have also been great in getting out on as many platforms as possible to make sure to fuel the brand as a true mass market proposition rather than contentedly sitting on iOS only and being happy with that niche (bear in mind that J2ME is still many times larger than iOS in terms of reach; for brand awareness of a consumer brand, this is a crucial factor).

However, it is a hit business, isn’t it? And I doubt there is a recipe (or that Rovio has it): Anecdotally, Chillingo, the publisher of the original Angry Birds on iOS (subsequently acquired by EA), uses its Chillingo label for the “premium” games and their Clickgamer for the rest. Angry Birds was published under the Clickgamer label. So did anyone know? I don’t think so.

I would love to see them thrive because they deserve it: they are a hard-working and lovely bunch. So go, my good folks, mighty Eagles, Albatrosses and the whole swarm!

Conference: Games For Brands

By Volker

On 13/10/2011

In Events, Games

A fairly wonderful conference will open its doors on 27 October in London, UK, namely Games for Brands, an event where we will do just that: investigate if and to what extent games may work for brands. Just speak to Barclaycard (their Waterslide Extreme game [done by Fishlabs] did more than 14m downloads on iOS) or Volkswagen (multiple games by Fishlabs [again]) for the Polo and others and a special VW Golf GTI edition of Real Racing by the recently acquired Firemint).

The event features a fairly cool line-up, too, including speakers from:

Rovio (they of Angry Birds fame)
Channel 4
Google
PlayGen
BBC
EMI
King.com
LoveFilm.com
Tate
Wellcome Trust (yes, they’re the Glaxo Wellcome guys)
Aegon
Matmi (they did games and apps for instance for Lily Allen, Gorillaz, United.com and Vimto – the seriously mixed-up fruit)
and, yes, I will be talking again, too (but when don’t I?)

I also have a goodie for the readers of this blog: four of you can get a very special discount and attend for £95.00 only. Tempted? Contact me (either via e-mail or Twitter or through the contact form here).

It’ll be a good one, so come along! 🙂