Wednesday, January 3, 2018

Sumo Digital Acquires CCP Newcastle

When CCP announced an end to developing virtual reality games in October, the statement also disclosed the Icelandic game company was engaged in negotiations to sell its Newcastle studio to a third party. Yesterday, we found out the name of the buyer: Sumo Digital.

Sumo Digital is a name introduced to EVE Online players at EVE Vegas 2017 as the studio CCP chose to develop Project Nova. Project Nova is a planned first person shooter set in the EVE Online universe that, unlike DUST 514, will not connect directly to EVE Online.

In addition to working with CCP, the UK-based game developer has worked on games for Microsoft and Sony. Some of the games Sumo Digital developed include Little Big Planet 2 & 3, Crackdown 3, several of the Forza series of racing games, as well as its own IP, Snake Pass.

The acquisition of CCP's Newcastle studio is part of an ongoing expansion of the UK developer. Sumo Digital already owned two studios in the UK, located in Sheffield and Nottingham, as well as a studio in Pune, India. In addition, the game company announced in October an expansion of its Nottingham and Sheffield studios to house new art development facilities. The company also launched an IPO in December, with shares becoming publicly traded on 20 December. At the time of the IPO, Sumo Digital was valued at £145 million ($197 million). According to Reuters, Sumo Digital planned to use of the proceeds of the offering to pay off debt and as additional working capital.

Normally I would consider a chapter closed in the history of CCP. In the case of Sumo Digital, however, we will hear a lot about the company in the future.

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