Rovio Entertainment has announced the closure of its Copenhagen development studio, a move that follows the cancellation of its mobile title Sonic Blitz. The decision marks a significant shift for the Finnish publisher, which has been grappling with the broader challenges facing the games industry and the specific difficulties encountered by the Sonic project. According to a spokesperson speaking to Mobilegamer.biz, the redundancy process is still underway, and the company cannot yet disclose the precise number of employees who will be affected.
What is known is that roughly twenty people were directly involved in the development of Sonic Blitz. The spokesperson emphasized that the choice to end operations in Copenhagen was "extremely difficult" and that Rovio fully acknowledges the impact this will have on its staff, especially given the turbulent environment that many game developers are currently navigating.
For those team members who cannot be reassigned to another Rovio project, the company has pledged a comprehensive transition package. This package includes outplacement services designed to help former employees find new roles, as well as wellbeing support to assist them during the career transition. Rovio’s leadership hopes that these measures will ease the disruption caused by the studio’s shutdown. Alexandre Pelletier‑Normand, who serves as both Rovio’s CEO and the chief operating officer of Sega West, explained the strategic rationale behind the move.
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 other words, Rovio is tightening its focus on projects that demonstrate clear commercial potential and aligning its development resources accordingly. When Sonic Blitz was first introduced into the Sonic brand portfolio, Pelletier‑Normand believed it would be a strong addition that could resonate with the dedicated Sonic fan base. "We felt that this was a great addition and one that could please the Sonic fandom," he recalled. The hypothesis was that a mobile Sonic title would attract both longtime followers of the franchise and new players looking for a high‑quality, fast‑paced experience on their phones.
However, the reality proved more complex. While the concept looked promising on paper, the key metric of player retention fell short of expectations.
In the mobile gaming world, retaining users over an extended period is essential for monetisation and long‑term viability. Pelletier‑Normand noted that the game struggled to keep players engaged, which was a primary factor in the decision to halt the project. "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," he added. "We're still very proud of the game, very proud of what the team achieved, but it didn’t work." Sonic Blitz entered a soft launch phase in 2025, targeting markets in the Philippines and Brazil.
The soft launch was intended to gather data on player behaviour, monetisation patterns, and overall reception before a wider rollout. Despite these efforts, the game was shut down last month after the data indicated insufficient retention and engagement. Rovio framed the shutdown as part of a "broader change" at the Copenhagen studio, stressing that the decision does not reflect a lack of passion, creativity, or effort from the development team.
"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 developer said in an official statement. The closure of the Copenhagen studio occurs against the backdrop of Sega’s acquisition of Rovio in 2023 for $776 million.
Earlier this year, Sega disclosed a $200 million impairment on the acquisition cost after the combined entity’s profitability fell below the original forecasts. Part of the shortfall has been attributed to difficulties integrating Rovio’s Beacon technology—a location‑based service—into Sega’s existing mobile titles. Sega CEO Haruki Satomi explained that the operational and marketing approaches of Rovio differ significantly from those traditionally employed by Sega.
"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." The challenges surrounding Sonic Blitz highlight the broader complexities of adapting a legacy console franchise to the mobile arena. While the Sonic brand enjoys a strong legacy and a devoted fan base, translating that appeal into a mobile format requires careful consideration of gameplay loops, monetisation strategies, and cultural preferences across regions.
The failure to secure strong retention metrics suggests that the game’s design may not have aligned with the expectations of mobile gamers, who often favour short, repeatable sessions and clear progression incentives. Rovio’s decision to streamline its operations and focus on core strengths is indicative of a larger trend within the industry, where publishers are consolidating resources to maximise return on investment. By cutting losses on projects that do not meet performance thresholds, companies aim to preserve financial stability and free up talent for future initiatives that have a higher probability of success.
For the remaining staff at Rovio’s other locations, the company’s statement signals a continued commitment to supporting its workforce through the transition. The outplacement services and wellbeing support promised to the Copenhagen team are part of a broader effort to maintain morale and retain talent across the organisation.
In summary, the closure of Rovio’s Copenhagen studio and the cancellation of Sonic Blitz underscore the difficulties of launching new IP extensions in a highly competitive mobile market. While the team’s effort and creativity were praised, the ultimate lack of player engagement forced the company to rethink its strategy, refocus its resources, and aim for projects with clearer pathways to sustainable success.