Chinese Room Secures Management Buyout, Establishing Independent Studio – Still Wakes the Deep Studio

Teh chinese room Secures Independence Thru Management Buyout

Brighton-based game developer The Chinese Room has successfully completed a management buyout,transitioning from its previous ownership under Sumo Group to operate as an independent studio. A spokesperson for The Chinese Room confirmed the news to IGN today.

This development comes after a period of uncertainty for the studio, which followed Sumo group’s announcement earlier this year regarding a strategic refocusing on development services for partners, moving away from original franchise development.

In a statement released to the press, The Chinese Room indicated that a sale by Sumo Digital to a private equity firm or an overseas buyer had appeared increasingly probable. Sumo Group itself was acquired by Chinese tech giant Tencent in 2018.

However, the studio will now be steered as an independent entity, led by studio director Ed Daly. This independence was facilitated by venture capital firm Hiro Capital.

“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,” Daly stated. “This is what we are doing and we want to carry on doing it, so we’re happy to carry on in this vein.”

Following the recent release of Still Wakes the Deep and the Siren’s Rest DLC, The Chinese Room confirmed it has two new original intellectual properties in development.

Looking ahead, the studio is also set to publish Paradox interactive’s highly anticipated Vampire: The Masquerade – Bloodlines 2 in October.

Spike Laurie, a partner at Hiro Capital, lauded the move, calling The Chinese Room “a huge british success story” and a “unique creative force capable of competing on the world stage.” He emphasized the importance of nurturing such creative talent within the UK, stating, “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. We need to nurture this talent and support it through challenging times, because it is one of our leading creative exports.”

The management buyout ensures The chinese Room remains under British leadership, allowing it to chart its own creative course.

How does the management buyout of Chinese Room impact the creative direction of future projects under the Still Wakes the Deep Studio banner?

The Buyout Details & New Ownership

In a meaningful move for the horror gaming landscape, Chinese Room, the studio behind critically acclaimed titles like Everybody’s Gone to the Rapture and Dear Esther, has successfully completed a management buyout. This transition establishes the studio as an independent entity, now operating under the name Still Wakes the Deep Studio. The buyout, finalized on July 21, 2025, marks a new chapter for the team, allowing for greater creative control and a focused vision for future projects.

Key details of the buyout include:

Independent Operation: Still Wakes the Deep Studio will operate autonomously, free from previous ownership constraints.

Management Leadership: The studio is now led by its existing management team, ensuring continuity and a clear understanding of the studio’s core values.

Financial Backing: While specific financial details remain undisclosed, the buyout was facilitated by a combination of private investment and existing revenue streams.

Focus on Narrative Horror: The studio remains committed to its signature style of narrative-driven horror experiences.

Still Wakes the Deep: The First Project

The newly formed Still Wakes the Deep Studio is already hard at work on its first project, a psychological horror game titled Still Wakes the Deep. this title, developed in collaboration with Bobby Zarate (known for his work on The Last of Us), is set in the North Sea oil industry in the 1970s.

Here’s what we know about Still Wakes the Deep:

1. setting: the game takes place on a remote oil rig, creating a claustrophobic and isolated atmosphere.
2. Genre: It’s a first-person psychological horror experience, emphasizing atmosphere, tension, and narrative.
3. Story: Players will investigate a series of unsettling events unfolding on the rig, uncovering a dark and disturbing mystery.
4. partnership: The collaboration with Bobby Zarate signals a commitment to high-quality narrative design and character growth.
5. Publisher: The game is being published by Fellow Traveller,known for supporting innovative and independent titles.

Impact on the Indie Horror Scene

This management buyout and the establishment of Still Wakes the Deep Studio are poised to have a positive impact on the indie horror game development scene. Chinese Room, even before the buyout, was a respected name known for pushing boundaries in interactive storytelling.

Increased Creative Freedom: Independence allows the studio to take more risks and explore unconventional ideas without external pressures.

Focus on Niche Genres: The studio’s dedication to narrative horror fills a gap in the market, catering to players seeking more than just jump scares.

attracting Talent: A strong studio reputation and a clear creative vision can attract top talent in game development.

boosting Indie Visibility: The success of Still Wakes the Deep Studio can help elevate the profile of other independent horror developers.

Chinese Room’s Legacy & Future Outlook

Chinese Room’s previous work, including Everybody’s Gone to the Rapture (walking simulator, environmental storytelling) and Dear Esther (first-person exploration, experimental narrative), established the studio as pioneers in the “walking simulator” genre and atmospheric horror. These titles were praised for their innovative storytelling techniques and immersive environments.

The studio’s evolution into Still Wakes the Deep Studio represents a natural progression, building upon its existing strengths while embracing a more focused and independent approach. The team’s experience in crafting compelling narratives and atmospheric experiences will be crucial to the success of Still Wakes the Deep and future projects.

Key personnel & Studio Structure

While details regarding the exact studio structure are limited, the management buyout indicates a core team taking ownership. Key personnel are expected to include:

Dan Pinchbeck: Previously a leading figure at Chinese Room, his role within Still Wakes the Deep Studio is central to the studio’s creative direction.

The Core Development Team: The team responsible for previous Chinese Room successes will form the foundation of the new studio.

Bobby Zarate (Narrative Consultant): His expertise in narrative design will be invaluable to Still Wakes the Deep*.

The Rising Demand for Psychological horror Games

The horror game market is experiencing a surge in demand for psychological horror experiences. Players are increasingly seeking games that prioritize atmosphere, suspense, and narrative depth over traditional jump scares and action-oriented gameplay. This trend benefits studios like Still Wakes the Deep Studio, which specialize in crafting immersive and thought-provoking horror experiences. Related search terms include: “atmospheric horror games,” “narrative driven horror,” “psychological thriller games,” and “indie horror games 2025.”