Sega Reports Over $200M Rovio Impairment in Q3 Earnings

Sega says Sonic Rumble underperformed and that, overall, the value of the Angry Birds developer Rovio was written down, resulting in an impairment loss of more than $200 million.

Sega Sammy Holdings Inc., Sega’s parent company, recently reported its Q3 earnings for fiscal year 2026. Noted in the earnings that, as it pertained to Rovio’s business, there was a recognized impairment loss of approximately 31.3 billion yen. As of this writing, that amounts to about $205 million.

Sega completed its acquisition of Rovio in August 2023.

Factors Surrounding Rovio’s Underperforming Quarter

In the Q3 presentation, Sega attributes Rovio’s performance falling short of initial expectations to “rapid changes in the market environment and other factors.” One of those factors was the collaborative mobile title Sonic Rumble, which struggled to meet key performance indicators.

Moving forward, Sega plans to reverse this momentum by focusing specifically on Angry Birds and Sega IPs, including Sonic, for future games. They also see the release of the third Angry Birds movie, set for December, as another factor driving hopeful increased traction for the brand.

The Future of Sonic

Sonic Rumble, which is also available for free on Steam, may have underperformed, but the blue blur always bounces back. It’s Sonic’s 35th anniversary this year. So far, no official game releases have been scheduled in celebration, but the Sonic Team has put out a new audio drama in the Sonic universe. Learn more about that here.

Elsewhere in the filings, Sega announced plans to make mainstay IPs a focus not just in mobile releases but also in traditional console releases. Read more about that here.

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