The Chinese Room Regains Independence via Sumo Digital Buyout

The Chinese Room, the celebrated British independent studio known for last year's offshore horror hit Still Wakes the Deep, has now formally separated from its former parent company, Sumo Digital.

The studio, also acclaimed for indie favorites Dear Esther and Everybody's Gone to the Rapture, has completed a management buyout, a spokesperson for The Chinese Room confirmed to IGN.

This announcement follows a period of uncertainty for the Brighton-based developer, after Sumo previously stated it would shift its focus "exclusively toward development services for partners," moving away from original franchise work.

In a press statement issued today, The Chinese Room indicated it had become "increasingly likely" the studio would be sold off by Sumo Digital, potentially to a private equity firm or an overseas buyer—Sumo itself having been acquired by Chinese conglomerate Tencent in 2018.

Instead, The Chinese Room will operate as an independent entity led by studio director Ed Daly, following a transaction arranged by venture capital firm Hiro Capital.

"This management buyout enables us to pursue our creative drive, continuing to develop fresh, original intellectual properties while also collaborating with other studios on aligned projects," Daly stated. "This approach defines our vision, and we're excited to continue on this path."

Following the release of Still Wakes the Deep and last month's Siren's Rest DLC, The Chinese Room is currently developing two new original IPs, it was confirmed today.

Up next, however, is the long-awaited Vampire: The Masquerade - Bloodlines 2, set to be published by Paradox Interactive this October.

"The Chinese Room represents a major British success story, widely acknowledged as a distinctive creative force able to compete globally," commented Spike Laurie, partner at Hiro Capital. "From employing British talent to crafting games set in the UK, they've stood out as a leading creative studio—and now they've reclaimed control of their future while maintaining their British identity."

"We risk losing such creative gems to overseas corporations," Laurie added. "That would be a disservice to the UK's $5.5 billion gaming industry, which enjoys worldwide recognition. We must nurture and support this homegrown talent through challenging periods, as it remains one of our top creative exports."