Splash Damage announces its separation from Tencent

Splash Damage has transitioned away from its ownership by Tencent, having been acquired by private-equity investors. Despite the ownership change, the studio announced its management will remain the same, though it declined further comments.

Founded in 2001, the UK studio gained recognition with its development of the Wolfenstein Enemy Territory expansion. It later collaborated with Microsoft, contributing to the Gears of War series.

The Chinese poultry company Leyou acquired Splash Damage in 2016, after previously purchasing a controlling interest in Digital Extremes, known for Warframe.

Tencent purchased Leyou Technologies in 2020 for $1.3 billion, integrating Splash Damage into its broad array of game development studios.

In a 2021 interview with GamesIndustry.biz, CEO Richard Jolly expressed optimism about the studio's future after the acquisition, highlighting ambitious expansion plans.

By the next year, Splash Damage began working on Transformers: Reactivate, followed by the announcement of Project Astrid, an open-world survival game, in 2023.

However, Splash Damage disclosed that Transformers: Reactivate was cancelled in January, risking job losses within the company, without stating the reason for the project's termination.

Yong-yi Zhu, holding roles at Tencent Games, reiterated Tencent's dedication to Western game studios in a conversation with GamesIndustry.biz. He mentioned adjustments in investment levels as part of industry norms rather than withdrawing from the Western market.