The Chinese Room regains independence from Sumo Digital via management buyout 

• The BAFTA-winning studio aims to continue developing original IP outside Tencent-owned Sumo Group.
• Studio director Ed Daly says independence enables creative freedom and selective collaborations.

Little Orpheus developer The Chinese Room has regained its independence from Sumo Digital through a management buyout.

As reported by IGN, the Chinese Room said its return to independence was made possible by VC firm Hiro Capital, which aims to secure the studio's future after years under Tencent owned Sumo Group, which acquired the developer in 2018. 

"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," said studio director Ed Daly.

"This is what we are doing and we want to carry on doing it, so we're happy to carry on in this vein."

The Chinese Room will now operate independently and continue creating original games, building on the success of its BAFTA-winning horror title Still Wakes the Deep. 

Strategy shift

Last year Sumo Group laid off 15% of its workforce, and this year it announced a shift away from original franchises toward co-development, a move it said would affect studios and staff.

In March of this year, investment firm Emona Capital, alongside Secret Mode co-founders James Schall and Ed Blincoe acquired the publisher from Sumo Digital, allowing it to operate independently.

Secret Mode has since continued to focus on PC and console titles under its current leadership.