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Rovio Closes Copenhagen Studio After Sonic Blitz Cancellation

Sega is tightening costs and reallocating resources to core franchises as retention problems and integration shortfalls left the acquired studio underperforming.

Overview

  • Rovio has discontinued all operations in Denmark and closed its Copenhagen studio, with a redundancy process now under way and staff either being reassigned or let go.
  • The studio’s mobile game Sonic Blitz has been cancelled and taken offline after failing to keep enough players engaged during earlier soft‑launch tests.
  • Rovio’s CEO and Sega West COO said weak player retention, not the game’s creative design, was the main reason the title did not validate for full release.
  • Sega recorded a large impairment on its 2023 Rovio purchase and has announced measures to cut costs, focus development on Angry Birds and Sonic, and better use Rovio’s Beacon technology.
  • Affected employees will be offered transition support, including outplacement and wellbeing services, and the closure signals a wider push by Sega to concentrate investment on proven mobile IP and improve profitability.