Rovio has announced the closure of its Copenhagen development studio following the cancellation of its mobile game Sonic Blitz. The company confirmed that the decision was taken after a careful review of the project's performance and its broader strategic priorities. While the exact number of staff members affected has not been disclosed, a spokesperson indicated that roughly twenty people had been directly involved in the Sonic Blitz effort. The spokesperson explained that the redundancy process is still underway, making it difficult to provide a precise headcount at this stage.
"The choice to end our operations in Copenhagen was an incredibly hard one," the representative said. "We are fully aware of the impact this will have on our employees, especially given the ongoing turbulence across the wider games industry." To support those who will not be reassigned to other Rovio projects, the company said it will offer a comprehensive transition package. This package includes outplacement assistance, career counseling, and wellbeing services designed to help affected staff members secure new employment opportunities as quickly as possible.
Rovio's chief executive officer, who also serves as the chief operating officer of Sega West, Alexandre Pelletier‑Normand, elaborated on the strategic rationale behind the move. "We needed to focus our bets both on the titles we develop and the locations where we develop them," he said. "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 noted that the concept looked promising on paper, particularly in the mobile market, but the real test is player retention.
"Retention numbers have been disappointing, and that is a critical early indicator. In mobile gaming, you have to keep players engaged for a long period of time to succeed," he explained. He continued, "I still believe there is a path to bringing Sonic to a larger mobile audience, but it turned out to be far more complex than both Sega and Rovio anticipated.
We remain extremely proud of the game and of what the team accomplished, but ultimately it didn't work." Sonic Blitz entered a soft launch phase in 2025, targeting markets in the Philippines and Brazil. However, 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 studio, emphasizing that the decision does not reflect a lack of passion, creativity, or effort from the development team. "We want to be absolutely clear that this move is not a commentary on the dedication, imagination, or hard work that went into Sonic Blitz, nor on the enthusiastic support we received from the community throughout its development," the company said in an official statement.
The backdrop to this development includes Sega's acquisition of Rovio for $776 million in 2023. Earlier this year, Sega disclosed a $200 million impairment charge related to the acquisition after the combined entity's profitability fell short of initial forecasts.
The impairment highlighted challenges in integrating Rovio's Beacon technology—a location‑based service—into Sega's existing mobile portfolio. Sega's chief executive, Haruki Satomi, remarked that the operational and marketing approaches of Rovio's titles differ significantly from those traditionally used by Sega. "New mobile games have yet to fully leverage Beacon," Satomi said, adding that this mismatch contributed to the shortfall in expected results.
In summary, the closure of Rovio's Copenhagen studio underscores the difficulties of translating beloved console franchises like Sonic into successful mobile experiences. While the company remains confident in its overall strategy and continues to explore ways to reach mobile gamers, the Sonic Blitz experiment serves as a reminder that even well‑known IPs require careful adaptation to the unique demands of the mobile market. The affected employees will receive support as they transition to new opportunities, and Rovio will continue to focus its resources on projects that align more closely with its core strengths and market expectations.