Sega Admits Acquisition of Angry Birds Maker Rovio Hasn’t Worked as Planned, Blames ‘Rapidly Changing’ and Competitive Mobile Market

Sega has written off $200 million of its $776 million acquisition of Angry Birds maker, Rovio, stating the “profitability of [the mobile] business had fallen below the initial forecast” — corporate speak for, ‘this hasn’t made us as much money as we thought it would.’

Sega confirmed back in April 2023 plans to purchase Angry Birds developer Rovio for $776 million, with Rovio’s mobile game expertise intended to help boost Sega’s own position in the mobile market. The acquisition completed in September that same year.

Now, in its most recent financial report, Sega Sammy said that while Rovio was “a company with strong development and operational capabilities in the mobile game area, a sector with major growth potential,” the “business environment in the global mobile game market [has] rapidly changed, with multiple major titles emerging within a short period, and competition for customer acquisition [is] intensifying.” Which is why it’s now alerting shareholders of “extraordinarily losses and revision of operating results forecast.”

“Rovio found it difficult to advance its initially planned business development, and the profitability of this business has fallen below the initial forecast,” Sega admitted.

Because the “recoverable amount” related to the buyout fell “significantly” short, the company has written off $198 million (¥30.4 billion), essentially downgrading the value of Rovio to around $578 million — $200m less than it paid for it.

Rovio is just one of the companies Sega owns. It is also home to Company of Heroes developer Relic Entertainment, Two Point Campus developer Two Point Studios, and perhaps most notably, Persona developer Atlus.

And on the plus side, Sega’s tentpole Sonic series continues to impress. IGN’s Sonic Racing: CrossWorlds review returned an Amazing 9/10 when it released in September 2025. “Sonic Racing: CrossWorlds fires on all cylinders with a fantastic roster, excellent courses, and lengthy list of customization options,” we wrote at the time.

Vikki Blake is a reporter for IGN, as well as a critic, columnist, and consultant with 15+ years experience working with some of the world’s biggest gaming sites and publications. She’s also a Guardian, Spartan, Silent Hillian, Legend, and perpetually High Chaos. Find her at BlueSky.