Rovio CEO details rebuild after $200m Sega write-down, refocuses on core IP

Sega wrote down its $775m Rovio acquisition by $200m in February. The write-down followed Sega's May admission the deal failed to create "economic value." Rovio laid off 36 staff in October and cancelled Sonic Blitz in August. Pelletier-Normand, also Sega West Studios COO, now refocuses Rovio's roughly 415 staff on Angry Birds IP.

Rovio's remaining 415 staff sit across four studios after cuts and closures.
Espoo holds 290 staff, running Dream Blast, Match and Friends plus core services.
Stockholm's 70 staff build Angry Birds 2, the live title Pelletier-Normand says is growing.
Barcelona's 35 and Canada's 20 staff cover live ops, monetisation and Apple Arcade titles.
"The main point now is that Rovio needs to be successful at being Rovio... Let's focus on what we know, what we're good at, and build from there." - Alexandre Pelletier-Normand, CEO, Rovio

Rovio is building direct-to-consumer webstores despite entering the space late, Pelletier-Normand admits.
UA networks now charge for visibility stores no longer provide for free.
Rovio still pays store commission on top of that UA spend, squeezing margin twice.
"We're in a situation where we're forced to do this... We're kind of squeezed in the middle." - Alexandre Pelletier-Normand, CEO, Rovio

Pelletier-Normand argues Apple and Google no longer earn their 30% commission.
He has repeatedly told both platforms their terms should become more reasonable.
"I'm not saying that they're not offering anything... But I think it's undeniable that it's different than what they were offering before." - Alexandre Pelletier-Normand, CEO, Rovio

Rovio folded three-year soft-launch title Bloom City Match into Angry Birds Match.
The move trades a new IP bet for an established brand with a built-in audience.
Partner studio OhBiBi continues developing Angry Birds Rush, still some way from launch.
"It's not trying everything to see what sticks to the wall - it's having a clear thesis on why this could work." - Alexandre Pelletier-Normand, CEO, Rovio

Sonic Rumble Party launched in May 2025 but has underperformed, Pelletier-Normand says.
He admits the game risks cancellation and might already have closed under a lesser brand.
Rovio has stopped supporting the title as publishing partner, leaving its fate to Sega Japan.
"There is no doubt that it's much trickier to cancel a Sonic title... There is no doubt that the game hasn't been as successful as we would have liked." - Alexandre Pelletier-Normand, CEO, Rovio

For Investors & VC: Add brand-driven cancellation delays to diligence on famous-IP mobile titles in portfolios.
For Service Vendors: Pitch Sega West on co-developing deeper-mechanic Sonic genres and mobile adaptations of Two Point.
For UA & Marketing: Rebuild ROAS targets to credit webstore margin when bidding on lapsed high-spender cohorts.