Rovio Entertainment has announced the closure of its Copenhagen development studio, a move that follows the cancellation of the mobile game Sonic Blitz. The decision marks a significant shift for the Finnish publisher, which had been attempting to broaden its portfolio with a Sonic‑the‑Hedgehog title aimed at smartphone users.
According to a spokesperson speaking to Mobilegamer.biz, the redundancy process is still underway, so the exact headcount impacted cannot be confirmed at this time. Roughly twenty people were dedicated to the Sonic Blitz effort, working on everything from game design and programming to art and quality assurance.
The spokesperson emphasized that the choice to cease operations in Copenhagen was "extremely difficult" and that the company is fully aware of the personal and professional ramifications for the affected staff, especially given the broader challenges currently facing the games industry. To soften the blow, Rovio said it will provide a comprehensive transition package for those employees who cannot be reassigned to another internal project. The package includes outplacement services, career counseling, and wellbeing support designed to help former team members secure new employment opportunities as quickly as possible.
Alexandre Pelletier‑Normand, who serves as both Rovio CEO and COO of Sega West, explained the strategic rationale behind the closure. He said the company needed to "concentrate our bets both in terms of the games that we're making and where we're making them." In his view, the Sonic Blitz initiative was launched with the intention of tapping into the passionate Sonic fan base and expanding the franchise onto mobile platforms. "When Sonic Blitz was introduced into the brand, we felt that this was a great addition and one that could please the Sonic fandom," Pelletier‑Normand recalled.
"That was the hypothesis. And in mobile, it looks great on paper, and then you just need to validate it, and it seems that retention hasn't been really good for us, which is one of the first steps.
We need to see people engage with the game for a long period of time." He added that, despite the disappointment, he remains convinced that Sonic could eventually find a foothold on mobile devices. "I still am convinced that there is a way to reach more players on mobile with Sonic, it turns out that it's much more complicated than I think both Sega and Rovio thought. We're still very proud of the game, very proud of what the team achieved, but it didn’t work," he said.
Sonic Blitz had entered a soft‑launch phase in 2025, targeting markets in the Philippines and Brazil. The limited release was intended to gather early user data and test core gameplay loops before a wider rollout.
However, the game was pulled from those markets last month after the data indicated insufficient player retention and monetisation metrics. Rovio framed the shutdown as part of a "broader change" within the Copenhagen studio, stressing that the decision does not reflect a lack of passion, creativity, or community support that the developers received throughout development. The closure comes against the backdrop of Sega's acquisition of Rovio in 2023 for $776 million. Earlier this year, Sega disclosed a $200 million impairment charge on the acquisition, citing lower‑than‑expected profitability.
The parent company also reported difficulties integrating Rovio's Beacon technology—a location‑based service—into its own mobile titles. Sega CEO Haruki Satomi noted that the operational and marketing approaches of Rovio differ significantly from Sega's traditional methods, and that the Beacon platform has yet to be fully leveraged in new mobile games. "We found that the operational and marketing methods and approaches significantly differ from Rovio titles and new mobile games are yet to fully exploit Beacon," Satomi explained. "Consequently, we have unfortunately not achieved the level of results that had been expected prior to the acquisition." Industry observers see the Copenhagen shutdown as a cautionary tale about the challenges of translating beloved console franchises to the mobile arena.
While the Sonic brand carries strong nostalgic value, mobile gamers often demand quick, bite‑sized experiences and robust retention loops, which can be difficult to reconcile with the deeper, narrative‑driven design of classic Sonic titles. Moreover, the competitive landscape of mobile gaming—dominated by titles with massive user acquisition budgets and sophisticated data‑driven optimisation—means that even well‑funded projects can falter if early metrics do not meet expectations. For the remaining Rovio teams, the focus will now shift to projects that align more closely with the company's core competencies and market strategy. The company has hinted at continuing to invest in its flagship Angry Birds franchise while exploring new IPs that can deliver sustainable revenue streams on both mobile and emerging platforms.
In summary, Rovio's decision to close its Copenhagen studio reflects a broader reassessment of its mobile ambitions, especially concerning licensed properties like Sonic. While the company expresses pride in the effort and creativity of the team behind Sonic Blitz, the harsh reality of player retention and monetisation in the mobile sector ultimately dictated the outcome.
The affected employees will receive support to transition to new roles, and Rovio aims to refocus its development resources on areas where it can achieve stronger financial performance and long‑term growth.