British indie studio The Chinese Room, acclaimed for last year's offshore horror hit Still Wakes the Deep, has formally separated from its former parent company Sumo Digital.
The studio behind beloved indie titles Dear Esther and Everybody's Gone to the Rapture has completed a management buyout, a spokesperson confirmed to IGN.
This announcement follows a period of uncertainty for the Brighton-based developer after Sumo revealed it would concentrate solely on providing development services for partners rather than pursuing original franchises.
In today's statement, The Chinese Room indicated it had become "increasingly likely" the company would be sold by Sumo Digital, potentially to private equity or an international buyer. Sumo itself was acquired by Chinese conglomerate Tencent in 2018.
Instead, the studio will now operate independently under director Ed Daly through a deal arranged by venture capital firm Hiro Capital.
"This management buyout enables us to pursue our creative passion for developing new original IP while selectively collaborating with other studios on aligned projects," Daly stated. "This approach represents our vision, and we're delighted to continue in this direction."
Following Still Wakes the Deep and its recent Siren's Rest DLC, The Chinese Room confirmed two new original IPs are currently in development.
The studio's upcoming release will be the long-awaited Vampire: The Masquerade - Bloodlines 2, scheduled for October publication by Paradox Interactive.
"The Chinese Room exemplifies British creative excellence, recognized globally for its distinctive storytelling and competitive quality," said Hiro Capital partner Spike Laurie. "From employing British talent to creating UK-set narratives, they've been a leading creative studio. Now they're steering their own future while maintaining their British identity."
"We risk losing such creative treasures to foreign acquisition," Laurie continued. "This would undermine Britain's $5.5 billion gaming industry and its international reputation. We must nurture this exceptional talent through challenging periods, as it represents one of our premier creative exports."
