Sega has written off $200 million of its $776 million acquisition of Offended Birds maker, Rovio, stating the “profitability of [the mobile] enterprise had fallen beneath the preliminary forecast” — company converse for, ‘this hasn’t made us as a lot cash as we thought it could.’
Sega confirmed again in April 2023 plans to buy Offended Birds developer Rovio for $776 million, with Rovio’s cell recreation experience meant to assist enhance Sega’s personal place within the cell market. The acquisition accomplished in September that very same 12 months.
Now, in its most up-to-date monetary report, Sega Sammy mentioned that whereas Rovio was “an organization with sturdy growth and operational capabilities within the cell recreation space, a sector with main progress potential,” the “enterprise surroundings within the international cell recreation market [has] quickly modified, with a number of main titles rising inside a brief interval, and competitors for buyer acquisition [is] intensifying.” Which is why it is now alerting shareholders of “terribly losses and revision of working outcomes forecast.”
“Rovio discovered it tough to advance its initially deliberate enterprise growth, and the profitability of this enterprise has fallen beneath the preliminary forecast,” Sega admitted.
As a result of the “recoverable quantity” associated to the buyout fell “considerably” quick, the corporate has written off $198 million (¥30.4 billion), basically downgrading the worth of Rovio to round $578 million — $200m lower than it paid for it.
Rovio is simply one of many corporations Sega owns. Additionally it is house to Firm of Heroes developer Relic Leisure, Two Level Campus developer Two Level Studios, and maybe most notably, Persona developer Atlus.
And on the plus aspect, Sega’s tentpole Sonic collection continues to impress. IGN’s Sonic Racing: CrossWorlds overview returned an Wonderful 9/10 when it launched in September 2025. “Sonic Racing: CrossWorlds fires on all cylinders with a incredible roster, glorious programs, and prolonged checklist of customization choices,” we wrote on the time.
Vikki Blake is a reporter for IGN, in addition to a critic, columnist, and marketing consultant with 15+ years expertise working with a few of the world’s largest gaming websites and publications. She’s additionally a Guardian, Spartan, Silent Hillian, Legend, and perpetually Excessive Chaos. Discover her at BlueSky.