Rovio has announced the closure of its Copenhagen development studio following the cancellation of the mobile title Sonic Blitz. The company confirmed that the decision was taken after a thorough review of the project's performance and its alignment with the broader strategic direction of the business. According to a spokesperson speaking to Mobilegamer.biz, the redundancy process is still underway, making it difficult to provide an exact headcount of the employees who will be affected. Roughly twenty staff members had been dedicated to the Sonic Blitz effort, working on everything from game design and programming to art and quality assurance.
"The choice to cease operations in Copenhagen has been one of the toughest we have faced," the spokesperson explained. "We are fully aware of the impact this will have on our colleagues, especially given the ongoing volatility across the wider games industry." For those team members who cannot be reassigned to another Rovio project, the company said it will offer a comprehensive transition package. This includes outplacement assistance, career counselling, and wellbeing support designed to help former employees secure new roles and navigate the change with as much stability 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.
He said the company needed to "focus its bets both in terms of the games we are making and where we are making them." In his view, concentrating resources on a smaller number of high‑potential titles was essential for long‑term sustainability. "When we first introduced Sonic Blitz into the Sonic brand, we believed it could be a strong addition that would resonate with the Sonic fan base," Pelletier‑Normand said.
"That was our hypothesis. On paper, the concept looked promising for mobile, but the real test is player retention. Unfortunately, the numbers showed that users were not staying engaged for the length of time we needed them to." He added, "I still believe there is a path to reaching a larger mobile audience with Sonic, but the reality turned out to be far more complex than either Sega or Rovio anticipated. We remain very proud of the game and of what the team accomplished, but it simply didn't work out as we hoped." Sonic Blitz entered a soft‑launch phase in 2025, targeting markets in the Philippines and Brazil.
Despite an initial period of optimism, the title was pulled from those regions last month. Rovio framed the shutdown as part of a "broader change" within the 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 received from the community during the game's development.
The broader context of this move includes Sega's acquisition of Rovio for $776 million in 2023. Earlier this year, Sega disclosed a $200 million impairment related to the acquisition after the combined entity's profitability fell short of original forecasts. One of the challenges cited was the difficulty of integrating Rovio's Beacon technology—a location‑based service—into Sega's existing mobile portfolio. Sega CEO Haruki Satomi remarked that the operational and marketing approaches of Rovio differed significantly from Sega's own methods, and that the Beacon platform had yet to be fully leveraged in new mobile releases.
"As a result, we have unfortunately not achieved the level of results that were expected prior to the acquisition," Satomi said. The closure of the Copenhagen studio underscores the broader pressures facing mid‑size developers in an increasingly competitive mobile market.
While the Sonic franchise remains a valuable intellectual property with a dedicated fan base, translating that brand equity into sustainable mobile experiences has proven to be a formidable challenge. Industry analysts note that retention and monetisation metrics are critical for mobile success, and even well‑known IPs can falter if they fail to capture long‑term player interest. Rovio has pledged to support the affected staff throughout the transition period, offering severance packages, job‑search resources, and mental‑health services.
The company also indicated that it will continue to evaluate its portfolio and explore new opportunities that align more closely with its core competencies and strategic objectives. In summary, the Copenhagen studio shutdown reflects a strategic pivot by Rovio and its parent company Sega, driven by under‑performance of Sonic Blitz, integration challenges with Beacon technology, and a broader need to streamline operations in a tough market environment. While the decision is painful for the employees involved, both Rovio and Sega remain optimistic that refocusing their resources will ultimately lead to stronger, more sustainable game offerings in the future.