Rovio has announced the closure of its Copenhagen studio, a decision that follows the cancellation of the mobile title Sonic Blitz. The company confirmed that the redundancy process is still underway, and while it cannot disclose the exact headcount affected, it estimates that roughly twenty staff members were directly involved in the development of Sonic Blitz. A spokesperson for Rovio explained that the choice to end operations in Copenhagen was "extremely difficult" and that the firm is fully aware of the impact on its employees, especially given the ongoing turbulence across the wider video‑game industry. To mitigate the fallout, Rovio said that any team members who cannot be reassigned to a different internal project will receive a comprehensive transition package.
This package includes outplacement assistance, wellbeing support, and other resources designed to help displaced staff secure new employment opportunities. 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. He stated that 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 initially seen as a promising addition to the Sonic brand, one that could resonate with the franchise’s dedicated fan base.
"When we first introduced Sonic Blitz into the Sonic portfolio, we believed it would be a strong fit and could delight longtime fans," Pelletier‑Normand said. "That was the hypothesis. On paper, the concept looked solid, especially for the mobile market, but the real test is player retention.
Unfortunately, the retention metrics we observed were far below what we needed to sustain the game over the long term." He continued, "I still believe there is a pathway to bring Sonic to a broader mobile audience, but the reality turned out to be far more complex than both Sega and Rovio anticipated. We remain very proud of the game and of what the development team achieved, 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 limited rollout, 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 development team, nor does it diminish the enthusiastic support the game received from its community during development.
The background to this development is the 2023 acquisition of Rovio by Sega, a deal valued at $776 million. Earlier this year, Sega disclosed a $200 million impairment charge related to the acquisition, citing that the combined profitability fell short of the original forecasts.
One of the challenges highlighted was the difficulty of 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. He noted that new mobile games have yet to fully leverage the Beacon platform, which contributed to the shortfall in expected results following the acquisition. The closure of the Copenhagen studio underscores the broader pressures facing the mobile gaming sector, where even well‑known intellectual properties like Sonic must meet stringent engagement and monetisation benchmarks to remain viable.
While the cancellation of Sonic Blitz represents a setback, both Rovio and Sega have signalled their intention to continue exploring ways to bring beloved franchises to mobile audiences, albeit with a more cautious and data‑driven approach. For the affected employees, Rovio has pledged to support the transition with career counselling, job‑placement services, and mental‑health resources. The company also expressed gratitude to the community of Sonic fans who supported the project throughout its development cycle, reaffirming that the spirit of innovation and collaboration that defined Sonic Blitz will inform future endeavours. In summary, the shutdown of Rovio’s Copenhagen studio and the termination of Sonic Blitz illustrate the complexities of merging legacy gaming brands with modern mobile strategies.
While the venture did not achieve the desired retention and revenue outcomes, the experience provides valuable lessons for both Rovio and Sega as they refine their mobile portfolios and seek more sustainable growth paths in an increasingly competitive market.