Sega Closes Studio After Sonic Mobile Game Fails

Sega is closing Rovio’s Copenhagen studio following the cancellation of the mobile game Sonic Blitz, and the fate of some employees remains unknown.

Rovio, which Sega acquired in 2023 for €706 million, is shutting down its Copenhagen division as part of staff reductions. The exact number of layoffs is still unknown because the process is ongoing. About 20 people worked on Sonic Blitz.

The game was downloaded more than 200,000 times. In June 2026, the number of installs reached approximately 32,000 for the month, which proved insufficient for a full release. Low player retention rates were among the problems.

Rovio stated that some employees will be offered transitions to other teams within the company. Those who cannot be placed will receive assistance in finding new jobs and employee well-being support.

The studio closure is another blow to Rovio. In February 2026, Sega reported a write-down of about $200 million related to its investment in the company.