Rovio Entertainment has announced the closure of its Copenhagen development studio following the cancellation of its mobile title, Sonic Blitz. The decision marks a significant shift for the Finnish‑based publisher, which had been working to expand its portfolio with a Sonic‑the‑Hedgehog‑themed game for smartphones.
According to a spokesperson speaking to Mobilegamer.biz, the redundancy process is still underway, making it difficult to provide an exact head‑count of the staff affected. Roughly twenty people had been assigned to the Sonic Blitz project, and many of them will now be impacted by the studio shutdown.
"The choice to end our operations in Copenhagen has been incredibly hard," the spokesperson explained. "We fully understand the ramifications for our colleagues, especially given the ongoing pressures across the wider games sector." The company added that any team members who cannot be reassigned to another Rovio initiative will receive a comprehensive transition package.
This package includes outplacement assistance, career‑coaching services, and wellbeing support designed to help affected employees secure new positions and manage the change. Rovio's chief executive officer, who also serves as chief operating officer of Sega West, Alexandre Pelletier‑Normand, 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." In other words, Rovio is tightening its focus on projects that promise the strongest returns and aligning development resources with markets where it can be most competitive.
When Sonic Blitz was first introduced as part of the Sonic brand, Pelletier‑Normand believed it could be a valuable addition that would resonate with the franchise's dedicated fan base. "We thought it would be a great fit and would delight Sonic enthusiasts," he noted.
"That was the hypothesis. On paper, the concept looked solid, especially for mobile, but the real test is validation through player behavior." The critical metric that fell short was player retention. In the mobile gaming world, a title must keep users engaged over an extended period to generate sustainable revenue. "Retention hasn't been really good for us, which is one of the first steps we look at," Pelletier‑Normand said.
"We need to see people engage with the game for a long period of time." Despite the disappointing results, the executive remains convinced that Sonic could eventually find a foothold on mobile platforms. "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 admitted.
"We're still very proud of the game, very proud of what the team achieved, but it didn’t work." Sonic Blitz had a soft launch in 2025, targeting markets in the Philippines and Brazil. After a brief testing period, the game 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. "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 broader context for this move includes Sega's acquisition of Rovio in 2023 for $776 million. Earlier this year, Sega disclosed a $200 million impairment charge on the acquisition, citing lower‑than‑expected profitability. The underperformance has been linked 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 used 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 closure of the Copenhagen studio underscores the challenges of merging distinct corporate cultures and technologies, especially in a fast‑moving sector like mobile gaming. While the Sonic Blitz project did not meet expectations, Rovio's leadership has indicated that the company will continue to evaluate its portfolio, prioritize projects with strong retention potential, and seek synergies that can deliver sustainable growth.
For the roughly twenty employees who were directly involved with Sonic Blitz, the transition package aims to provide a safety net as they look for new opportunities, either within Rovio's other studios or elsewhere in the industry. The broader workforce at Rovio will also be watching closely as the company refines its strategic direction in the wake of the Sega acquisition and the recent financial write‑down. In summary, the Copenhagen studio shutdown reflects a strategic realignment after the under‑performance of Sonic Blitz, a mobile game that failed to retain enough players to justify continued investment.
While the team behind the title is praised for its dedication and creativity, the commercial realities of mobile gaming have forced Rovio and its parent company Sega to make tough decisions aimed at preserving long‑term viability.