Rovio Entertainment has announced the closure of its Copenhagen development studio following the decision to cancel the mobile game Sonic Blitz. The company confirmed that the studio’s shutdown is part of a broader restructuring effort, and that the project’s termination was a key factor in the decision.
According to a spokesperson speaking to Mobilegamer.biz, the redundancy process is still underway, so the exact headcount impacted cannot be disclosed at this time. However, the spokesperson noted that roughly twenty people had been assigned to the Sonic Blitz effort, indicating that a sizable portion of the Copenhagen team was directly involved in the title. "The choice to cease operations in Copenhagen has been an incredibly tough one," the spokesperson explained. "We fully understand the personal and professional ramifications for our employees, especially given the ongoing volatility that the wider games industry is experiencing." The company added that any staff members who cannot be reassigned to another Rovio project will receive a comprehensive transition package.
This package will include outplacement assistance, career counseling, and wellbeing support designed to help affected employees find new opportunities and manage the change smoothly. Rovio’s chief executive, Alexandre Pelletier‑Normand, who also serves as chief operating officer for Sega West, elaborated on the strategic rationale behind the move. He said the firm needed to "concentrate our bets both in terms of the games that we're making and where we're making them," emphasizing a shift toward projects with clearer paths to commercial success. When Sonic Blitz was first introduced into the Sonic brand portfolio, Pelletier‑Normand believed it could be a compelling addition that would resonate with the long‑standing Sonic fan base.
"We thought it would be a great fit and could delight the community," he recalled. "That was the hypothesis. In the mobile space, the concept looks solid on paper, but you have to validate it with real‑world data.
Unfortunately, the retention metrics we observed were far below what we needed. Retention is a critical early indicator because it shows whether players are staying engaged over time." He continued, "I still believe there is a way to bring Sonic to more mobile players, but it turned out to be far more complex than both Sega and Rovio anticipated. We remain very proud of the game and of what the 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. After a brief testing period, the title was pulled from those regions last month.
Rovio framed the shutdown as part of a "broader change" within the Copenhagen studio, underscoring that the decision does not reflect a lack of passion, creativity, or effort from the development team, nor does it diminish the enthusiastic response the project received from its community during development. The broader context of this move includes Sega’s acquisition of Rovio in 2023 for $776 million.
Earlier this year, Sega disclosed a $200 million impairment related to the acquisition after the combined entity’s profitability fell short of initial forecasts. The company cited difficulties integrating Rovio’s Beacon technology—a location‑based service platform—into Sega’s existing mobile portfolio.
Sega CEO Haruki Satomi explained that the operational and marketing approaches of Rovio’s titles differ significantly from Sega’s own mobile strategies, and that the Beacon system 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 said. "Consequently, we have unfortunately not achieved the level of results that had been expected prior to the acquisition." The closure of the Copenhagen studio marks a notable shift for Rovio, which has traditionally been known for its flagship Angry Birds franchise. The company’s leadership appears to be refocusing resources on core IPs and on markets where they can more reliably generate sustainable revenue streams.
While the termination of Sonic Blitz is a setback for fans hoping to see the iconic blue hedgehog transition more fully into mobile gaming, Rovio’s statement suggests that the experience will inform future decisions about how to approach licensed properties and mobile game development. In summary, Rovio’s Copenhagen office will cease operations, with approximately twenty staff members directly tied to the Sonic Blitz project likely to be affected. The company is offering transition assistance to those who cannot be redeployed internally.
The decision reflects a broader strategic realignment following Sega’s acquisition of Rovio, challenges in integrating Beacon technology, and under‑performance of the Sonic Blitz title in key retention metrics. Despite the disappointment, both Rovio and Sega emphasize their continued pride in the work completed and their commitment to supporting the affected employees as they move forward.