The Calculus of Fun (Ep. 3)
Gamecraft
Success Lies in Understanding Your Business Model
Rovio misjudged the nature of their success by aspiring to become the next Disney through character licensing, underestimating the profitability of the video game industry. While they focused on movies and merchandise with low royalty returns, companies like Supercell thrived on direct virtual goods sales with negligible costs. Ultimately, while Rovio's foray into media yielded unexpectedly successful films, the focus should have been on maximizing profits from their core gaming business.
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