Rovio Entertainment has announced the closure of its Copenhagen development studio, a move that follows the cancellation of its much‑anticipated mobile title, Sonic Blitz. The decision marks a significant shift for the Finnish‑owned publisher, which has been navigating a turbulent period in the broader gaming market.
According to a spokesperson speaking to Mobilegamer.biz, the redundancy process is still underway, and while the exact headcount affected has not been disclosed, it is known that roughly twenty people were directly involved in the Sonic Blitz effort. "The choice to end our operations in Copenhagen has been an incredibly hard one," the spokesperson explained. "We fully understand the impact this will have on our team, especially given the ongoing difficulties facing the games industry as a whole." For those employees who cannot be reassigned to another Rovio project, the company has pledged a comprehensive transition package. This includes outplacement assistance, dedicated career‑coaching services, and wellbeing support designed to help staff secure new employment opportunities as quickly and smoothly as possible.
Alexandre Pelletier‑Normand, who serves as both Rovio's chief executive officer and the chief operating officer of Sega West, elaborated on the strategic rationale behind the move. "We needed to concentrate our bets both in terms of the games we are developing and the locations where we develop them," he said.
"When Sonic Blitz was first introduced into the Sonic brand, we believed it would be a strong addition that could resonate with the Sonic fan base." He continued, "That was the hypothesis. On paper, the concept looked solid for mobile, but the real test is validation. Unfortunately, our retention metrics fell short of expectations.
Retention is a critical early indicator because it shows whether players stay engaged with a title over an extended period." Pelletier‑Normand added, "I still believe there is a path to reaching a broader mobile audience with Sonic, but it turns out to be far more complex than Sega and Rovio initially anticipated. We remain very proud of the game and of what the development team accomplished, but ultimately it didn’t work out." Sonic Blitz entered a soft launch phase in 2025, targeting markets in the Philippines and Brazil.
Despite the initial optimism, the title was pulled from those regions last month. Rovio framed the shutdown as part of a "broader change" within the Copenhagen studio, emphasizing that the decision does not reflect a lack of passion, creativity, or effort from the team, nor does it diminish the enthusiastic support the community showed 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 related to the acquisition, citing that profitability fell short of the original forecasts.
Integrating Rovio's proprietary Beacon technology into Sega's existing mobile portfolio proved more challenging than expected. Sega CEO Haruki Satomi noted, "We discovered that the operational and marketing approaches differ significantly between Rovio's titles and our own mobile games, and Beacon has yet to be fully leveraged in new releases. As a result, we have not achieved the performance levels we projected before the acquisition." Industry observers see the Copenhagen shutdown as a symptom of the larger difficulties that traditional game publishers face when expanding into the hyper‑competitive mobile sector. Mobile gaming demands rapid user acquisition, high retention, and continuous content updates to keep players invested, all of which can strain resources if a studio lacks deep expertise in that arena.
For the remaining Rovio teams, the company says it will double down on its core franchises—such as Angry Birds and other proven IPs—while exploring more sustainable ways to experiment with new titles. The firm also indicated that it will continue to evaluate its global studio footprint, seeking to align development locations with strategic priorities and market realities.
The affected Copenhagen staff, many of whom have backgrounds in both console and mobile development, will receive severance packages that comply with Danish labor laws, as well as the aforementioned outplacement services. Rovio has pledged to maintain open communication throughout the transition period, offering regular updates to both employees and the broader community.
While the closure is undoubtedly a setback for the team in Denmark, Pelletier‑Normand remains optimistic about the future. "Our focus now is to learn from this experience, refine our approach to mobile, and ensure that any future collaborations with iconic brands like Sonic are built on a solid foundation of data‑driven insights and realistic expectations," he said. In summary, Rovio's decision to shut down its Copenhagen studio reflects a strategic realignment after the underperformance of Sonic Blitz.
The company is providing support to displaced staff, acknowledging the challenges of mobile game retention, and reaffirming its commitment to its flagship properties while seeking more viable pathways for future mobile ventures.