In a strategic pivot, The Chinese Room, now an independent studio, is embracing a more frugal approach to game development. Ed Daly, the studio director, shared insights with Game Developer about the studio’s intent to keep budgets modest for its upcoming projects. This decision is not merely about cost-cutting; it reflects a broader philosophy aimed at managing risk and fostering creativity within constraints.
Embracing a New Financial Philosophy
Daly articulated the challenges of larger budgets, noting, “Life is easier if budgets are large because you can take your time, play around, and make some mistakes. That approach no longer feels sustainable.” By self-funding their new games for the time being, The Chinese Room is positioning itself to remain agile and responsive to market demands. However, Daly acknowledged the eventual need for partnerships to support future endeavors.
He emphasized the importance of strategic decision-making, stating, “We need to pick our battles, manage scope, and avoid spending too much too quickly before we’re ready.” This sentiment resonates within the industry, as many studios are increasingly adopting a cost-conscious mindset, which Daly views as a positive shift.
Reflecting on the industry’s evolution, he remarked, “Three or four years ago, we were almost under pressure to talk up budgets for games to be taken seriously.” This pressure often led to the paradox of needing to justify inflated budgets, with studios scrambling to create games that cost between million and million. Today, however, the landscape has shifted significantly, with many developers now operating within the realm of low-single-million budgets to produce double-A projects.
The Chinese Room, which was acquired by Sumo Group in 2018, recently underwent a management buyout, reclaiming its independence. This newfound autonomy allows the studio to explore innovative avenues while adhering to its prudent financial strategy.
