SEGA closes Rovio Copenhagen studio after Sonic Blitz cancellation

SEGA has announced the closure of its studio, SEGA Rovio Copenhagen, following the cancellation of the mobile game Sonic Blitz. The project, which combined racing elements with tactical team combat and card collecting, had undergone a soft launch in Brazil and the Philippines in June 2025 before being taken offline in February 2026 for further development.

Despite efforts to refine the concept, development was ultimately halted. Alex Pelletier-Normand, CEO of Rovio and COO of Sega West, stated that while the game's value proposition was strong, it failed to achieve sufficient player engagement and retention.

The closure affects approximately 20 employees in Denmark. The company has indicated that some staff may be transitioned to other Rovio projects, while others will receive transition packages and relocation services. This decision follows SEGA's €706 million acquisition of Rovio in 2023, as the parent company continues to address financial performance and revenue declines within the Rovio division.