Mobile Game Makers Move into Toys, Films, and More

Entertainment conglomerates such as Walt Disney (DIS) spend billions developing popular franchises. However, they've had mixed success translating those film, television, and theme park characters to smartphones, where more and more eyeballs are glued. The makers of some popular iPhone games are hoping they'll have an easier time going in the opposite direction, and are trying to launch cross-media franchises based on their hit digital characters. "The new entertainment medium is apps," says Paul A. Baldwin, chief marketing officer of Palo Alto (Calif.)-based Outfit7, whose Talking Tom app has been downloaded 50 million times.

Helsinki-based Rovio Mobile, with its popular Angry Birds game, may be the best known of the wannabe Disneys. "Mickey Mouse is one of our role models," says Peter Vesterbacka, a co-founder. Rovio and its rivals are now trying to build empires that span toys, clothing, greeting cards, TV shows, and movies. Outfit7's series of talking animal characters, Mind Candy's Moshi Monsters, and Lima Sky's Doodle Jump have each proven popular enough to sell tens of millions of app downloads as well.