In a recent development, The Chinese Room, a notable name in the gaming industry, appears to have undergone a reduction in its workforce. Reports from GamesIndustry.biz indicate that several employees have taken to LinkedIn to announce their search for new opportunities, with approximately ten staff members actively seeking employment. However, when approached for clarification, The Chinese Room refrained from confirming the layoffs or disclosing the number of employees impacted.
Studio Director’s Statement
Ed Daly, the studio director, mentioned, “The Chinese Room will share news on changes for the studio in the coming weeks.” This statement suggests that further information regarding the studio’s current situation may soon be forthcoming.
This news follows closely on the heels of the release of the Siren’s Rest DLC for the horror title Still Wakes The Deep, highlighting a period of transition for the studio. The Chinese Room has been under the umbrella of Sumo Digital since its acquisition in 2018, and it recently took over the development of Paradox’s Masquerade – Bloodlines 2 in 2023, five years after its initial announcement.
Changes at Sumo Group
The broader context of this situation includes significant changes within Sumo Group itself. Earlier this year, in February 2025, the company shifted its focus back to its work-for-hire business model, a move that preceded the departure of its founders in May. Additionally, Sumo has seen several of its developers leave the fold; Timbre Games was spun out in September 2024, and the publisher Secret Mode was sold to Emona Capital in March of this year.
Given these developments, speculation arises regarding the future of The Chinese Room. While it remains a prized asset within Sumo’s portfolio, the possibility of further changes, including a potential sale, cannot be dismissed. The studio’s reputation for quality work-for-hire projects positions it as a valuable player in the industry, leaving many to ponder what lies ahead for this esteemed developer.
