The Chinese Room Gains Independence After Management Buyout
The Chinese Room, a renowned British independent game studio known for its critically acclaimed titles such as Still Wakes the Deep, Dear Esther, and Everybody’s Gone to the Rapture, has officially severed its ties with its former parent company, Sumo Digital. This development marks a significant shift in the studio’s trajectory, as it now operates as an independent entity.
The decision came after a period of uncertainty for the Brighton-based studio. Sumo Digital had previously announced that it would focus solely on providing development services to external partners rather than creating original intellectual property. This move raised concerns about the future of The Chinese Room, which had been under Sumo’s umbrella since 2018 when the company was acquired by the Chinese tech giant Tencent.
Instead of being sold to a private equity firm or an overseas buyer, The Chinese Room has completed a management buyout, facilitated by venture capital firm Hiro Capital. Studio director Ed Daly will lead the newly independent company. This change allows the team to continue working on original projects while also exploring collaborations with other studios that align with their creative vision.
“I’m thrilled we’ve taken this step,” Daly said. “This management buyout enables us to pursue our own creative ambitions and work on new, original intellectual property. At the same time, we can partner with other studios on projects that fit our goals. That’s what we’re doing, and we want to keep doing it.”
In addition to its upcoming projects, The Chinese Room has revealed two new intellectual properties currently in development. These will be unveiled in the near future, further expanding the studio’s portfolio.
While the studio focuses on its own games, it is also set to contribute to another major title: Vampire: The Masquerade – Bloodlines 2. This long-awaited sequel, developed in collaboration with Paradox Interactive, is scheduled for release in October. The game is expected to bring back fans of the original Bloodlines series and introduce a fresh narrative to the Vampire: The Masquerade universe.
Hiro Capital, the venture capital firm behind the buyout, praised The Chinese Room’s achievements and emphasized the importance of supporting British creative talent. Spike Laurie, a partner at Hiro Capital, highlighted the studio’s unique position in the global gaming industry.
“The Chinese Room is a huge success story and has proven itself as a standout creative force capable of competing internationally,” Laurie said. “From hiring British talent to setting games in the UK, they’ve always been a key player in our creative ecosystem. Now, they are once again in control of their own future, and that’s something worth celebrating.”
Laurie also expressed concern about the potential loss of British creative studios to foreign corporations. He stressed the need to protect and support these companies, which play a vital role in the $5.5 billion British gaming industry.
As The Chinese Room moves forward as an independent studio, it continues to build on its legacy of innovative storytelling and immersive gameplay. With a strong foundation and a clear vision, the studio is well-positioned to shape the future of the gaming industry.
