Splash Damage Splits From Tencent, Acquired by Private Investors

UK-based developer Splash Damage has officially parted ways with Tencent after being acquired by private-equity investors.

Founded in 2001, Splash Damage grew out of the Quake III modding scene and quickly made a name for itself in the multiplayer shooter space. Over time, the studio worked on both original titles and high-profile collaborations with major publishers such as id Software, Bethesda, and Microsoft.

They first made their mark with Wolfenstein: Enemy Territory, a free multiplayer expansion that became a cult classic. It also created all the multiplayer maps for id Software’s Doom 3. Building on that momentum, Splash Damage established itself as a reliable partner for big publishers, contributing to projects like Halo: The Master Chief Collection and several entries in the Gears of War franchise, including Gears of War: Ultimate Edition, Gears of War 4 multiplayer, and Gears 5 multiplayer.

Many of us probably remember their work on Gears Tactics, which showcased their ability to handle both strategy and action-driven gameplay.

In 2016, Splash Damage was acquired by Leyou Technologies, a Chinese poultry firm that had surprisingly diversified into gaming and also held a majority stake in Warframe developer Digital Extremes. Four years later, Tencent purchased Leyou for around $1.3 billion, bringing Splash Damage into its massive portfolio of studios.

However, the past few years have been turbulent. In January 2025, Splash Damage confirmed the cancellation of Transformers: Reactivate. No clear reason was given, but the cancellation raised questions about the studio’s direction under Tencent’s ownership.

The move to private-equity ownership could mark a fresh start. The leadership team remains intact, which suggests stability, and the studio now has more independence to pursue its own creative vision. We’ve seen other studios, like The Chinese Room, break away from larger publishers to regain control, and Splash Damage’s decision feels like part of that same trend.

Currently, the studio is working on Project Astrid, an open-world survival game being developed in collaboration with streamers Shroud and Sacriel. Still in production, it’s positioned as one of Splash Damage’s most ambitious original projects yet.

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