Highlights
- The Chinese Room exits Sumo Digital ownership via a management buyout funded by Hiro Capital.
- Sumo’s pivot to support services and IP de-prioritisation triggered the studio’s bid for autonomy.
- Independence allows The Chinese Room to retain British identity and focus on original creative projects.
Developers of the games Amnesia: A Machine for Pigs and Still Wakes the Deep, having once been part of Sumo Digital, have re-secured their independence. This is made possible for The Chinese Room through a management buyout, with the venture capital investment firm Hiro Capital providing the necessary funds. The news is a significant development for the studio, which had undergone corporate restructuring for some time and had lost its creative edge as a consequence.
The Chinese Room, renowned for its narrative-driven games, was acquired by Sumo Digital in 2018, marking a significant shift in its operational structure. However, this acquisition gradually impacted the studio’s creative autonomy. In January 2022, Sumo Digital itself became part of Tencent’s expanding global portfolio, further altering the corporate landscape. Under Tencent’s ownership, Sumo initiated a strategic shift toward development support services, prioritizing the development of existing IP.
This shift created uncertainty and internal challenges for The Chinese Room, culminating in layoffs that affected several team members. At least nine employees were let go, as part of wider redundancies across Sumo’s studios, impacting 15% of its workforce. These developments set the stage for The Chinese Room’s decision to pursue independence through a management buyout.
Corporate Layoffs
The Chinese Room confirmed that it endured layoffs as part of Sumo Digital’s corporate restructuring, with at least nine people affected. More broadly, 15 percent of the staff were let go by Sumo Digital in June 2024. These layoffs raised questions about the release of Vampire: The Masquerade – Bloodlines 2, a project taken on by The Chinese Room, but it remained slated for release. Bloodlines 2 was previously aiming for a first half of 2025 release, but was delayed back in March. It’s now aiming for an October launch.
However, what eventually led the studio to go independent was Sumo Digital reshaping its strategy earlier this year to become a development service provider to partners, rather than developing original Intellectual Properties (IPs) itself. This would mean subsidiaries such as The Chinese Room would be demoted just to support studios, and therein lies the impact on our studios and people.
Commitment to Original IP and Future Plans
The Chinese Room developers believed that the sale of the studio to another parent company, possibly an overseas one, was likely to occur. The management buyout was looked upon as a way to save the studio from this “travesty for the British gaming industry and allow the studio to remain independent and British, retaining control over its destiny.
The management buyout of The Chinese Room marks a pivotal moment for the studio, granting it renewed traction and freedom in the realm of creative game development. Free from the constraints of corporate oversight, the studio can now prioritize originality and innovation, aligning with its core identity.
Studio Director Ed Daly emphasized that the buyout empowers the team to pursue fresh, imaginative projects and develop new intellectual properties that reflect their creative ambitions. This autonomy not only protects the studio’s British roots but also revitalizes its vision, enabling The Chinese Room to reestablish itself as a pioneering force in narrative-driven gaming.
Preserving British Creativity Through Buyout
Now free from Sumo Digital, the studio reaffirmed its commitment to creating original IP. Daly added that they “want to carry on doing it, so we’re happy to carry on in this vein.” Hiro Capital partner Spike Laurie called The Chinese Room a “huge British success story and unique creative force.”
Their independence ensures that this “foremost creative studio” remains “in charge of their destiny while remaining British,” thereby nurturing talent. Hopefully, we will see how the removal of a heavy corporate hand will affect its performance with the release of Vampire: The Masquerade Bloodlines 2 this October.
