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The Chinese Room completes buyout from Sumo Digital

The UK game developer reestablishes its independence and plans new game ideas.

July 21, 2025 at 08:48 AM

The Chinese Room is independent again - here's how it happened

The studio has broken free from Sumo Digital and is pursuing new game ideas.

The Chinese Room has regained independence with new projects

The Chinese Room, a prominent UK game developer, has successfully executed a management buyout from Sumo Digital, marking its return to independence. Studio director Ed Daly confirmed the studio will continue to work on original intellectual property while also collaborating on partner projects. The buyout was enabled by VC Firm Hiro Capital and is viewed as a significant advancement for the British gaming sector, ensuring the studio remains UK-owned. However, the transition involved layoffs, which Daly acknowledged as a painful step necessary for the studio's future. Currently, the team consists of 55 developers, and Daly assured that no further layoffs are anticipated as they embark on new endeavors. The buyout follows Sumo Group's announcement earlier this year to shift its focus towards development services and move away from creative game production.

Key Takeaways

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The Chinese Room is now independent after a management buyout from Sumo Digital.

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The studio plans to develop original IP alongside partner projects.

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VC Firm Hiro Capital facilitated the buyout, highlighting its importance to the UK gaming industry.

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The buyout follows significant layoffs, with 55 developers remaining at the studio.

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Leadership changes include the appointment of John McCormack as creative director.

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This move reflects a broader trend in the gaming industry toward more independent studios.

"Yes, following the divestment process a number of roles were made redundant."

Daly discusses the difficult decision of layoffs amid the transition.

"This management buyout allows us to scratch the creative itch of continuing to work on new, original intellectual property."

Daly emphasizes the studio's renewed focus on creativity post-buyout.

The independence of The Chinese Room signals an important shift in the UK gaming landscape, especially amidst a wave of consolidations and buyouts in the industry. With a focus on original IP, the studio aims to retain its identity and foster creativity without the constraints of Sumo Digital's new ambitions. This move could restore confidence among smaller developers who fear being absorbed by larger entities. The uncertainty following layoffs illustrates the challenge many studios face when adapting to shifting market demands and leadership changes, but it also offers a fresh start for The Chinese Room.