Metacore, the company behind merge 2 mobile title Merge Mansion, is planning a restructuring to “better align with the core business, improve efficiency of operations, and respond to an increasingly competitive market environment.”
The company shared the news earlier today, claiming that the decision is based on the fact that Merge Mansion’s growth has “plateaued over the past few years” since its 2020 launch. Meanwhile, Metacore’s new investments “have not succeeded” in launching new games globally.
Therefore, Metacore is initiating change negotiations in Finland. If the plans are realized, the company claims, the studio would “consider reducing up to 160 roles” in the country. Moreover, Metacore is also investigating “what kind of changes there could be” to operations in Germany and Sweden.
“These are very difficult discussions,” Metacore CEO Mika Tammenkoski said in the announcement. “We have built an organization with growth ambitions that have not materialized as expected. The competition has become tougher every year since we launched Merge Mansion and created the merge 2 category as a pioneer. We need to make changes to remain competitive and to give Merge Mansion the best possible chance to succeed going forward.”
Related:Own goal specialist Xbox rifles another into the roof of the net – Patch Notes #60
Supercell, previously a major shareholder, will acquire Metacore
As part of what Metacore calls “its next phase,” Supercell, known for the likes of Clash Royale and Brawl Stars, will aqcuire “the rest of Metacore.” As a result, Merge Mansion will become part of Metacore’s live game portfolio. It’s worth noting that Supercell was already a major shareholder of the studio.
“I believe Merge Mansion’s best days are still ahead—with Supercell’s experience in turning around and scaling global live games, alongside our capabilities in live operations and user acquisition, we can scale it back into a leading position in its category,” Supercell CEO Ilkka Paananen said.
Supercell, which sits under the Tencent umbrella, has spent the last couple of years buying majority stakes and acquiring studios. In 2022, the studio also ended development on two of its projects: Clash Quest and Everdale.
Last month, the studio CEO and co-founder received a BAFTA Fellowship award in recognition of his long-standing contribution to the video game industry.
About the Author
Contributing Editor, News, GameDeveloper.com
Diego Nicolás Argüello is a freelance journalist and critic from Argentina. Video games helped him to learn English, so now he covers them for places like The New York Times, NPR, Rolling Stone, and more. He also runs Into the Spine, a site dedicated to fostering and supporting new writers, and co-hosted Turnabout Breakdown, a podcast about the Ace Attorney series. He’s most likely playing a rhythm game as you read this.
