The Chinese Room has gone independent again after a management buyout
The Chinese Room, the celebrated UK developer behind Dear Esther, Everybody’s Gone to the Rapture and Still Wakes The Deep, has regained its independence after a management buyout from Sumo Digital.
The studio is currently at work on concluding development of Vampire: The Masquerade – Bloodlines 2 for Paradox Interactive, and now has two original IPs in development.
The management buyout has been facilitated by venture capital firm Hiro Capital, with studio director Ed Daly continuing to head the developer.
“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,” Daly said. “This is what we are doing and we want to carry on doing it, so we’re happy to carry on in this vein.”
The Chinese Room had been bought up by Sumo Digital in 2018, as Sumo went on a large expansion drive through the last decade, opening up or acquiring studios in Nottingham, Newcastle, Leamington, Warrington, Pune and Bangalore and more, growing to around 1,400 employees by 2023. In turn, Sumo was acquired by Tencent in 2022.
However, the future of Sumo and all their subsidiaries were thrown into doubt earlier this year when the company issued a statement that it would now refocus on third party work as opposed to original IP and self-publishing. This led to layoffs and the sale of publishing label Secret Mode.
The Chinese Room was also being put up for sale, but with the likelihood of being acquired by an overseas entity again has been staved off. Hiro Capital is a London and Luxembourg VC fund that specialises in founding and angel funding gaming, sports and technology.
“The Chinese Room is a huge British success story that has rightly been recognised as a unique creative force capable of competing on the world stage,” said Spike Laurie, a partner at Hiro Capital. “From hiring British people to making games set in the UK, they’ve been one of our foremost creative studios and now they are once again in charge of their own destiny while remaining British.
“We are at risk of overlooking these creative gems and letting them be sold to overseas corporations,” Laurie continued. “That is a travesty for the $5.5 billion British gaming industry which has a world-renowned reputation. We need to nurture this talent and support it through difficult times, because it is one of our leading creative exports.”
Source: IGN
