UK-based studio The Chinese Room has regained its independence from Sumo Digital, according to recent reports. Sumo Digital acquired the studio nearly seven years prior in a deal whose terms were never publicly disclosed.

The separation reportedly stems from Sumo Digital’s pivot toward a work-for-hire business structure, with additional concerns over potential future sales. The team will now operate autonomously under current studio director Ed Daly, who secured financial backing from investment firm Hiro Capital. Daly stated:

This transition enables us to explore fresh creative opportunities through original IP while selectively collaborating with external partners on aligned projects. Our goal remains focused on sustaining this balance while staying true to our artistic vision.

Hiro Capital partner Spike Laurie commented:

The Chinese Room represents a significant UK success narrative, demonstrating global competitiveness while maintaining strong local roots. As custodians of British creative talent, we must prevent such studios from being acquired by international entities. The £4.3 billion domestic gaming industry depends on nurturing these innovators, who contribute immensely to our cultural impact worldwide.

Despite recent workforce reductions, The Chinese Room is currently developing two undisclosed original projects. Its highest-profile title remains Vampire: The Masquerade – Bloodlines 2, which shifted to the studio after Hardsuit Labs exited the project. Paradox Interactive’s anticipated RPG revival is scheduled for October 2025, with further updates expected during Gamescom later this month.