For more than a year now, tens of millions of Americans have found time each day to devote themselves to an essential task: swiping at their phones and tablets to arrange colorful candy icons in rows. They are playing Candy Crush Saga, a wildly addictive mobile game that has been downloaded more than half a billion times. You can play the game for free, but enough people have been willing to pay for extra lives and various performance-boosting tools to make it staggeringly profitable. Last year, Candy Crush’s maker, an Irish company called King Digital Entertainment, had almost two billion dollars in sales, five hundred and sixty-seven million dollars of which was pure profit. Last month, King filed for an initial public offering, which is expected to value the company at five billion dollars.
The I.P.O. is no surprise, given King’s domination of the booming mobile-game business, but it’s likely to end badly, because King is part of a venerable tradition: the one-hit wonder. Like Coleco, with Cabbage Patch Kids, or Ty, Inc., with Beanie Babies, King’s business is dependent on its one star product; although the company has more than a hundred titles, almost eighty per cent of its revenue comes from Candy Crush. King has done a great job of making money from the game, and of keeping it fresh, but Candy Crush is still a fad, and, like all fads, it will fade. Indeed, as King’s filing makes clear, the number of people who pay for the game has already begun to taper off, as have sales and profits.
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This article was originally posted in The New Yorker.
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