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Angry Birds creator Rovio acquires Futuremark Games Studio

Angry Birds publisher Rovio Entertainment has acquired its fellow Finnish game development house, Futuremark Games Studio, in order to get some new talent.  —  Rovio, which just launched its Angry Birds Space mobile game blockbuster …

VentureBeat Dean Takahashi

Context & Ripple Effects

Rovio's February discussion of growth and whether to remain independent came after earlier coverage had cast the company as a possible acquisition target for Zynga. By bringing in another Finnish studio instead, Rovio is taking the buyer's role while expanding around the Angry Birds franchise.

The move follows the launch of Angry Birds Space, which reached App Store chart leadership in more than 28 countries within hours. That reception raises the value of adding development talent as Rovio supports and extends a fast-moving mobile release.

First-order effects

  • Futuremark Games Studio's development talent moves under Rovio, giving Rovio an in-house team beyond the staff already assigned to Angry Birds.
  • Rovio can direct the acquired team's work toward its game pipeline at the point Angry Birds Space is drawing broad mobile attention.

Second-order effects

  • Futuremark ceases to be an independent source of game-development talent, while Rovio gains a local alternative to competing for that talent through hiring alone.
  • Other mobile publishers seeking to build on a breakout title face greater pressure to secure development capacity before it is absorbed by better-capitalized franchise owners.

Third-order effects

  • If hit-driven mobile publishers continue to acquire teams after successful launches, studio ownership will concentrate around proven consumer brands rather than independent developers.
  • The deal points to mobile-game growth being constrained not only by distribution and downloads, but by the ability to assemble teams fast enough to sustain a franchise.

The trend: Mobile game publishers are using breakout franchises to turn audience momentum into owned development capacity through studio acquisitions.