Still Wakes the Deep studio The Chinese Room goes independent to continue focus on original projects

UPDATE 22/07/25: The Chinese Room has confirmed layoffs at the studio following its split from Sumo Digital.

“Following the divestment process a number of roles were regrettably made redundant,” a company spokesperson told Game Developer. “The specifics are confidential but the studio is currently 55 developers. This was a very difficult process as we sought a future for the studio outside of Sumo. No more layoffs are planned as the studio moves forward.”

Original story follows.

ORIGINAL STORY 21/07/25: The Chinese Room, the British studio behind the likes of Still Wakes the Deep and Everybody’s Gone to the Rapture, has gone independent from previous owners Sumo Digital following a management buyout.

The Brighton-based studio was bought by Sumo Digital back in 2018, which was acquired by Tencent in January 2022 in a deal worth around £919m.

Now, The Chinese Room will continue developing original games independently, following its success with oil rig horror game Still Wakes the Deep that won the BAFTA for New Intellectual Property at this year’s awards, as well as both performer awards.

“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.”

Earlier this year, Sumo Digital announced it would refocus on “development services for partners”, which would “unavoidably… have an impact on our studios and people”. The news followed layoffs in June 2024, where 15 percent of the company were let go.