Looks like Candy Crush may be souring, as creator King Digital reports a 14% drop in share price overnight. Yesterday, the studio confessed that a lack of new releases and ongoing fluctuations in foreign currency would hold back its second quarter earnings for 2015.
In the first three months of this year, the company’s revenue dropped by more than 6% compared to this time last year, settling at US$569.5m – still notably higher than the market expectations of $563.4m – but even this was not enough to settle investors.
We look toward the remainder of the year, we expect the mid-year period to be seasonally softer, returning to growth trends in the latter part of the year.
King Digital is reportedly struggling to increase market share, despite hefty promotion of its major titles. The company’s biggest problem is decreasing sales from Candy Crush Saga and other “more mature games”, suggesting that gamers are moving on from the social puzzler template.
Time will tell how King chooses to deal with this: It already has a new game lined up to launch later this year, but nobody’s saying yet whether it will just be more of the same.