After lower than expected second-quarter results, the makers of mobile game Candy Crush Saga have reduced their 2014 forecasts. King Digital Entertainment had said it expected to make $2.25bn to $2.35bn from items purchased within its games compared to their previous estimate of $2.55bn to $2.65bn.
Its shares alarmingly slipped 22%, closing at $18.20 on the New York Stock Exchange. The company financial officer alluded towards the idea of plans to launch a sister title. According to Hope Cochran, Candy Crush will decline but it has a “very strong tail and a long tail.”
According to company reports, its quarterly revenue was $594m compared with $456m in the same period last year. According to King, as of December last year its 150 games were played more than 1.2 billion times per day and analysts value the firm at more than $5bn. Candy crush was also the top downloaded free mobile app of 2013.
Nicholas Lovell, director at Gamesbrief suggests that it has got some “fundamental issues” 78% of its revenue comes from Candy Crush Saga, which suggests that the concentration in one title is very big.
Parallels have been drawn between King and the other significant social gaming giant Zynga known for Farmville. However industry insiders argue that King is a smarter company when it comes to attracting new gamers through social media.