The Chinese Room has regained its independence – this is the story behind it

The Chinese Room, a notable British game studio, has declared its independence following a management buyout from its previous owner, Sumo Digital.

Studio director Ed Daly explained to GamesIndustry.biz that they remain committed to developing both original projects and collaborating on titles such as Still Wakes the Deep alongside VtM - Bloodlines 2 with Paradox Interactive. Currently, they are focused on two new intellectual properties.

The goal is to blend original creations with partnership collaborations, provided the objectives align.

The transaction was supported by VC Firm Hiro Capital, hailed as a significant development for the UK's gaming sector, as the company stays under British ownership.

Following layoff rumors hinted at by LinkedIn updates from past employees, Daly has now confirmed workforce reductions as part of preparing for the studio's future. "Yes, after the divestment, several roles were terminated," Daly acknowledged. "We maintain confidentiality on details, but the team currently consists of 55 developers, having gone through a challenging period transitioning away from Sumo's umbrella."

No additional layoffs are on the horizon as they advance.

The initiative for the buyout was prompted by Sumo Group's announcement in February to reallocate their efforts towards development services, propelling discussions at this year’s DICE summit.

"We were developing new IP that required funding, which was impeded by Sumo's strategic shift," Daly explained.

Recognized for first-person narrative games like Dear Esther, Everybody's Gone to the Rapture, and Still Wakes the Deep, The Chinese Room had been acquired by Sumo, a Tencent subsidiary, in August 2018.

Leadership talents have been reshuffled within the studio. Daly expressed excitement over leadership streamlining, appointing John McCormack as the new studio creative director. Previously the art director, McCormack assumed complete directorship for Still Wakes the Deep after Dan Pinchbeck’s 2023 departure. His extensive portfolio includes work at Mindscape, Bullfrog, EA, and Lionhead, notably as art director for the Fable series.

Additionally, Ross Manton is taking on the production director role, transitioning from his senior executive production position on Vampire: The Masquerade - Bloodlines 2.

The studio celebrated success at the BAFTAs, earning the New Intellectual Property award for Still Wakes the Deep, along with honors for performers Alec Newman and Karen Dunbar. It had previously won awards for Everybody's Gone to the Rapture.

Daly remarked, "This buyout empowers us creatively, allowing us to pursue new intellectual property while partnering on projects that resonate with our creative ethos."