Rovio Shuts Down Copenhagen as Canceled Sonic Blitz Stalls Sega’s Plans

Sega’s attempt to stretch its long-running partnership with Rovio into mobile Sonic games has hit a new snag, with Rovio shutting down its Denmark operations tied to a cancelled Sonic title. The latest development adds to the pressure on Sega after it struggled to turn the Angry Birds studio acquisition into durable economic value.

How Sega and Rovio’s Sonic plans unraveled

1. Sega and Rovio continued their collaboration with Sega aiming to draw on Rovio’s mobile expertise to co-develop Sonic games for iOS and mobile.
2. The effort began with Sonic Rumble Party, a multiplayer action game released in November 2025.
3. Rovio also worked on Sonic Blitz, described as a hybrid of a runner and a collectible card game. It launched in June 2025 in the Philippines and Brazil as part of a test phase.
4. The testing did not lead to a broader release. The project was cancelled after player retention was judged insufficient.
5. Following the cancellation, Rovio moved to close its Denmark operations in connection with the development work, with the shutdown centered on the team based in Copenhagen.

In commentary shared with a mobile-focused industry outlet, a Rovio representative said the process was not fully finalized and that an exact number of departures could not be confirmed at the time. The representative nevertheless stated that roughly 20 employees had worked on Sonic Blitz, which is now cancelled.

The spokesperson also characterized the Copenhagen decision as extremely difficult, emphasizing awareness of the impact on the team, particularly given broader challenges currently facing the games industry.

Why this matters for Sega after the Rovio buyout

The shutdown lands amid continuing financial strain around Rovio and Sega’s purchase of the Angry Birds maker. Rovio was acquired by Sega in early 2023 for 700 million euros, but the deal has not halted the studio’s decline in value.

Rovio’s revenue fell from 309 million euros in the 2022–2023 period to 181 million euros in the 2025–2026 financial year. Sega has acknowledged that it did not manage to “create economic value” through the acquisition, and it recorded an asset impairment of nearly 200 million dollars in its financial statements.