Rovio announced that its Copenhagen development hub will be closed following the cancellation of the mobile project Sonic Blitz. The decision, which was described by a company spokesperson as "extremely difficult," comes amid a broader restructuring effort that has affected a number of staff members across the studio. According to the spokesperson, the redundancy process is still underway, so the exact headcount of those impacted cannot be confirmed at this time. Roughly twenty people had been assigned to work on Sonic Blitz, and many of them will now face an uncertain future.
The company has pledged to offer a comprehensive transition package to anyone who cannot be reassigned to another Rovio project. This package includes outplacement assistance, career counseling, and wellbeing support designed to help former employees secure new roles in the industry. Alexandre Pelletier‑Normand, who serves as both Rovio's chief executive officer and the chief operating officer of Sega West, explained that the closure reflects a strategic shift in how the firm allocates its resources.
"We needed to concentrate our bets both in terms of the games that we're making and where we're making them," he said. Pelletier‑Normand added that when Sonic Blitz was first introduced into the Sonic brand, the team believed it would be a strong addition that could delight fans of the iconic blue hedgehog. "That was the hypothesis," he continued. "On paper the concept looked solid, especially for the mobile market, but the real test is validation through player retention.
Unfortunately, the retention metrics we observed were far below what we needed. In mobile gaming, long‑term engagement is a critical early indicator of success, and we simply didn't achieve it." Despite the disappointing performance, Pelletier‑Normand emphasized his continued belief that Sonic could thrive on mobile platforms, though the reality proved more complex than both Sega and Rovio had anticipated. "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 entered a soft launch phase in 2025, targeting markets in the Philippines and Brazil. The limited release was intended to gather data on player behavior and fine‑tune the experience before a wider rollout. However, after evaluating the early results, Rovio decided to pull the plug on the project last month, citing the need for a "broader change" at the Copenhagen studio.
The developer stressed that the shutdown should not be interpreted as a criticism of the passion, creativity, or effort that the team poured into the title. "We want to be clear that this decision is not a reflection of the passion, creativity or effort that went into making Sonic Blitz, nor the amazing support we received from our community throughout the development of the game," the company statement read. The closure of the Copenhagen studio occurs against the backdrop of Sega's recent acquisition of Rovio, which was completed in 2023 for $776 million.
Earlier this year, Sega disclosed a $200 million impairment charge related to the purchase, noting that the expected profitability of the acquisition fell short of initial forecasts. One of the challenges highlighted by Sega's chief executive officer, Haruki Satomi, has been the integration of Rovio's Beacon technology—a location‑based service—into Sega's existing mobile portfolio. Satomi explained that the operational and marketing approaches of Rovio differ significantly from those traditionally employed by Sega, and that the Beacon platform has yet to be fully leveraged in new mobile titles.
"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," he said. "Consequently, we have unfortunately not achieved the level of results that had been expected prior to the acquisition." Industry observers note that the mobile gaming sector has become increasingly competitive, with user acquisition costs rising and retention rates serving as the primary barometer of a game's health.
For a high‑profile IP like Sonic, expectations were especially high, and the inability to sustain player interest over time proved fatal to the project's viability. Looking ahead, Rovio has indicated that it will refocus its development efforts on projects that align more closely with its core competencies and strategic objectives.
While the Copenhagen studio's closure marks a sobering moment for the employees affected, the company hopes that the transition support offered will enable many of them to find new opportunities within the broader gaming ecosystem. The situation also serves as a cautionary tale for publishers and developers seeking to adapt beloved console franchises for the mobile market. Even with strong brand recognition, success is not guaranteed; thorough market testing, robust retention strategies, and seamless integration of new technologies are essential components of a sustainable mobile game launch. In summary, Rovio's decision to shut down its Copenhagen studio and cancel Sonic Blitz reflects a combination of disappointing player metrics, strategic realignment following a costly acquisition, and the broader challenges of translating a legacy franchise into a mobile experience.
The company remains proud of the work accomplished, but acknowledges that the venture did not meet the necessary performance thresholds to justify continued investment.