British developer The Chinese Room, best known for atmospheric hits like Still Wakes the Deep and Dear Esther, has officially regained its independence from former parent company Sumo Digital. This move comes in the wake of corporate restructuring, layoffs, and growing uncertainty within the Sumo Group.
Management Buyout Leads to Independence
The studio confirmed to IGN that it had completed a management buyout with the financial support of Hiro Capital, a venture capital firm focused on gaming and technology. As a result, The Chinese Room is now an independent, developer-owned company, with full control over its future and creative direction.
Studio director Ed Daly emphasized that independence would allow the team to “work on new, original intellectual property,” a critical move as Sumo Digital had recently announced it would stop creating original IPs. That decision effectively relegated studios like The Chinese Room to support roles—a future the studio clearly wanted to avoid.
From Layoffs to Liberation
This news comes after a rough few months. In June 2025, The Chinese Room was hit with layoffs, with at least nine employees affected as part of a broader restructuring by Sumo Digital. The cuts sparked concerns about the studio’s stability, especially with Vampire: The Masquerade – Bloodlines 2 still in development.
Although development on Bloodlines 2 reportedly remains on track, insiders hinted that there were real fears Sumo might sell off The Chinese Room to another publisher. The decision to go independent, then, was not just a creative one—but a strategic move for survival.
Two New Games Already in the Works
Now free from corporate oversight, The Chinese Room is wasting no time. The studio announced that two new original projects are currently in development. While no titles or details were revealed, the team hinted that both will carry forward the studio’s signature strengths: narrative depth, emotional immersion, and genre-pushing design.
Early teasers suggest one of the projects may venture deeper into psychological or existential horror, building on the eerie success of Still Wakes the Deep.
A Win for Creative Autonomy
The Chinese Room’s independence is being celebrated by fans and critics alike as a positive step in an industry increasingly dominated by consolidation. With Sumo Group pulling away from original IP development, the move ensures that The Chinese Room can continue producing the kind of story-rich, thought-provoking games that built its reputation.
This buyout could also serve as a case study for other studios caught in similar predicaments—showing that with the right support, creative freedom is still within reach.