The Chinese Room Regains Independence from Sumo Digital in Management Buyout Supported by Hiro Capital
British game developer The Chinese Room has officially regained its independence after a management buyout from former parent company Sumo Digital, as reported by IGN. Nearly seven years after being acquired in August 2018, the studio, known for atmospheric narrative games like Everybody’s Gone to the Rapture and the upcoming Vampire: The Masquerade – Bloodlines 2, has reclaimed creative control under the leadership of studio director Ed Daly.
The decision to pursue independence stems from Sumo Digital's recent shift to a development-for-hire business model, which clashed with The Chinese Room’s ambitions to focus on original intellectual property. There were also concerns within the studio that Sumo could sell the team to another company, further distancing it from its creative roots.
Backing for the buyout came from venture capital firm Hiro Capital, allowing Daly and his team to reclaim their vision. In a statement, Daly emphasized the creative freedom the buyout provides:
"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. This is what we are doing and we want to carry on doing it, so we're happy to carry on in this vein."
Hiro Capital partner Spike Laurie celebrated the deal as a win for the UK gaming industry:
"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. 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. That is a travesty for the $5.5 billion British gaming industry which has a world-renowned reputation."
Despite recent layoffs, The Chinese Room is actively developing two unannounced original IPs. However, all eyes are currently on Vampire: The Masquerade – Bloodlines 2, a long-awaited RPG title the studio took over from Hardsuit Labs. Scheduled for release in October 2025, the game is expected to have a major presence at Gamescom next month, where more details will be revealed.
With creative autonomy restored and backing from Hiro Capital, The Chinese Room is now poised to shape its future without external limitations. Their regained independence signals a renewed focus on artistic storytelling and innovation—hallmarks of their legacy in the narrative gaming space.
What do you think about The Chinese Room’s return to independence? Are you excited about what they could create next? Share your thoughts in the comments.