The Chinese Room Splits from Sumo Digital, Becomes Independent Studio Through Management Buyout

Still Wakes the Deep (Image Credit: The Chinese Room)

The Chinese Room, the acclaimed British developer known for Still Wakes the Deep and Everybody’s Gone to the Rapture, has officially separated from parent company Sumo Digital and will now operate as an independent studio.

The move was confirmed through a management buyout led by studio director Ed Daly, with backing from venture capital firm Hiro Capital.

The announcement brings clarity to months of uncertainty surrounding the future of the Brighton-based studio. Following Sumo Digital’s recent pivot to focus solely on development services for external partners, concerns had grown that The Chinese Room might be sold to an outside buyer — possibly a private equity firm or a foreign corporation. Sumo itself has been under Tencent ownership since 2018, which added to the speculation.

Those fears were put to rest with the confirmation of the buyout, allowing The Chinese Room to remain independent and fully in control of its creative direction. In a statement to IGN, Ed Daly expressed enthusiasm about the future, saying, “This management buyout allows us to scratch the creative itch of continuing to work on new, original intellectual property, but also to partner with other studios on other projects when they fit in with our vision. This is what we are doing, and we want to carry on doing it.”

This move also aligns with Hiro Capital’s broader mission of supporting standout UK-based game developers. Spike Laurie, a partner at the firm, noted, “The Chinese Room is a huge British success story that has rightly been recognised as a unique creative force… We are at risk of overlooking these creative gems and letting them be sold to overseas corporations.”

The Chinese Room, meanwhile, isn’t slowing down. After launching Still Wakes the Deep earlier this year and releasing its DLC expansion Siren’s Rest just last month, the studio has confirmed two new IPs are already in the works.

But before those arrive, the team is preparing for the much-anticipated release of Vampire: The Masquerade – Bloodlines 2, which is set to launch in October. This title has seen a rocky development history, changing hands several times before landing with The Chinese Room in 2021. Originally developed by Hardsuit Labs and published by Paradox Interactive, the action RPG is a follow-up to the cult classic 2004 game, based on the tabletop RPG of the same name.

The studio’s track record in narrative-driven experiences, from Dear Esther to Everybody’s Gone to the Rapture, has earned it a respected spot in the indie scene. Now, with its independence secured, The Chinese Room is well-positioned to lean into what it does best—crafting deeply atmospheric, story-rich games.