Microsoft have announced that they will partner with King to bring their games to Windows 10, the deal means that customers who upgrade or download Windows 10 during the launch period will find Candy Crush Saga installed automatically. They have also confirmed that other King titles will come to Windows 10 over time.
This news comes off the back of some underwhelming financials from the company of recent times. In August 2014, King released their second quarterly earnings report and the news was not as promising as the company had perhaps expected. King confirmed that, although revenues were up 30% on a year-over-year basis, their growth had been stunted considering the previous quarter had seen revenues up by 195%.
All of this meant that the company’s stock had taken a big hit with a drop of 22%. While the numbers are still solid, King took steps to try and win back investor confidence by acquiring Nonstop Games who developed Heroes of Honor, they did this with the aim of expanding their gaming repertoire to appeal to a broader range of gamers, and not just relying on the success of social hits such as Candy Crush.
Fast forward to today and the outlook is still not very promising for the company. Stock prices have continued to fall with a decrease of 8.6% to $14.99 in premarket trading. Gross bookings, or in game spend, performed better than predicted but this is down to the release of Candy Crush Soda Saga and impacted the spending on older titles. I’m sure King will be hoping that the partnership with Microsoft will breathe some new life into their titles and boost investor confidence.