Sega has taken a $200 million write-down on its $776 million purchase of Angry Birds creator Rovio, conceding that the mobile gaming division's "profitability... had fallen below the initial forecast"—essentially admitting the investment hasn't yielded the expected returns.
The company first announced its intention to acquire Rovio in April 2023, aiming to leverage the developer's mobile gaming expertise to strengthen Sega's position in that market. The deal was finalized in September of the same year.
In its latest financial disclosure, Sega Sammy noted that while Rovio possesses "strong development and operational capabilities in the mobile game area," the global mobile gaming landscape has shifted dramatically. The report highlighted "rapid changes, with multiple major titles emerging within a short period, and competition for customer acquisition intensifying." This prompted Sega to alert shareholders about "extraordinary losses and a revision of operating results forecasts."
Sega explicitly stated, "Rovio found it difficult to advance its initially planned business development, and the profitability of this business has fallen below the initial forecast." Due to the "recoverable amount" falling "significantly" short, the company wrote off $198 million (¥30.4 billion), effectively reducing Rovio's valuation to approximately $578 million—a $200 million decrease from the purchase price.
Rovio is part of Sega's broader portfolio, which also includes Relic Entertainment (developer of Company of Heroes), Two Point Studios (creator of Two Point Campus), and notably, Atlus (the studio behind the Persona series).
On a brighter note, Sega's flagship Sonic franchise continues to perform well. IGN's review of Sonic Racing: CrossWorlds, released in September 2025, awarded it an impressive 9/10, praising it as "Amazing." The review highlighted that "Sonic Racing: CrossWorlds fires on all cylinders with a fantastic roster, excellent courses, and lengthy list of customization options."
