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Game studio was founded 2003. They created many games without success but in December 2009 they hit the jackpot. Up to today over 1.7 billion game downloads. They moved to the other business area, franchising. Toys, candies, lemonade and whatever you can think about, their brand was there. Company was growing in incredible speed. New versions of the game was coming out steadily. But...

But then the shit hit the fan. Growth slowed down and the company is now planning lay-offs, 16% of its staff.

And who is the star of this story? Of course, Rovio Entertainment and Angry Birds. The star of Finnish game industry. They created really strong brand. They milked it really well, even tried to profile them as a Walt Disney of the century. Year ago everything look nice. What went wrong?

Gaming industry is rude. You have to be creative and renew your product all of the time. Rovio's problem is simple, they published the game 2009, but nothing new after that. Only variations. No new ideas in 5 years. That is a killer, especially in gaming industry. During the last years their growth was based on new business models, not their core business, games.

The lesson of this story is that yes, there are ways to expand your business by broaden your business area and/or model. It works for a while. But the core has to be in condition and it still has to be your focus area and developed all of the time, it is your mission. The other lesson is that this is not concerning only gaming industry, it is the issue which is a fact in every industry.
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