Snake Pass & Sonic Racing developer Sumo will no longer work on original IP

Sumo Digital has announced that it will no longer pursue working on original IP titles and will instead focus entirely on working as a studio for hire for development partners.

In a statement shared with employees on Tuesday, Sumo said that it had made the decision due to pressures to “balance our creative ambitions and the commercial realities to ensure the long-term stability and success of our business”.

Sumo Digital is best known for games based on partner IP, such as Sackboy: A Big Adventure and Team Sonic Racing. However, it previously created original titles like Snake Pass, and VGC understands that multiple original projects were recently in development at the company.

It’s currently unknown if the developers assigned to those projects will be reassigned, but Tuesday’s statement implies that layoffs are likely.

“After careful consideration, we have made the strategic decision to focus Sumo Digital exclusively on development services for partners – our core strength and the foundation of our success,” its statement reads.

“This will strengthen our position as a premium development partner, leveraging our expertise to contribute to and create great games for our clients. Whether collaborating on new or established games, co-developing games, providing specialist engineering, or porting services; we are confident in our teams’ exceptional talent and our ability to thrive in this next chapter.”

It adds: “Unavoidably this transition will have an impact on our studios and people. We are committed to minimising this impact as much as possible, exploring all options to retain talent, and supporting those affected with transparency, care, and compassion.”

Last year, the Sumo Group laid off 15% of its employees. Sumo Group, which was wholly acquired by Chinese tech giant Tencent in January 2022, counts Sumo Digital (Sackboy: A Big Adventure, Team Sonic Racing) and The Chinese Room (Dear Esther, Little Orpheus) among its studios.