After a period of layoffs marked a turbulent year for Splash Damage, the British game developer has announced the acquisition of Gamepires, creators of the survival game Scum. This move comes only months after Splash Damage’s workforce reduction, signaling a notable shift in its operational strategy. Backed financially and strategically by Emona Capital, the acquisition aligns with an industry trend where studios look to mergers and financial partners for stability, but it also raises questions about the timing and communication around staff changes.
When reports emerged last year regarding Splash Damage exploring new titles, the company was still silent on possible expansions or collaborations. Distinct from previous headlines, which centered on internal game development, this latest step marks a pivot toward external growth through acquisition. Past investments by Emona Capital in studios like Relic Entertainment and Blackbird Interactive echo this approach to consolidation and group synergy among medium-sized game makers.
Why Combine Splash Damage and Gamepires?
The consolidation of Splash Damage and Gamepires will form a new entity—Splash Damage Group—aimed at expanding premium game development and fostering co-development partnerships. The group will focus particularly on scaling the Scum franchise while exploring untapped intellectual property. Ben Hopkinson, the newly appointed CEO, remarked,
“This is a defining moment for Splash Damage. Our independence and experience, together with the acquisition of Gamepires, strengthens our ability to scale live-service titles and build new premium multiplayer experiences.”
What Role Does Emona Capital Play?
Emona Capital’s involvement extends beyond simple financial backing; the firm holds majority ownership in several notable studios, including Relic Entertainment and Blackbird Interactive. Its strategic support and industry network are expected to provide stability and open up further investment opportunities for Splash Damage Group. The company’s management stated,
“That stability has been important for protecting roles and giving the studio a solid foundation for its future.”
How Do Layoffs and New Hiring Coexist?
Splash Damage announced workforce cuts earlier this year to maintain adaptability in a challenging market. Following the acquisition, the group, with just under 150 staff, aims to grow steadily under Emona’s guidance. This juxtaposition of layoffs and immediate expansion through acquisition reflects how volatile and pragmatic business strategies have become in the gaming sector, particularly when investment priorities shift rapidly.
For developers, artists, and project managers alike, these recent events illustrate how consolidation and private equity investments are changing mid-sized studio dynamics. Acquiring Gamepires gives Splash Damage Group a working franchise in Scum to build upon, instead of restarting from an unproven project concept. This approach is common in current industry practice, enabling companies to leverage existing IP and audiences for future titles, albeit sometimes at the cost of internal and external transparency. For individuals interested in industry trends and organizational stability, keeping an eye on ownership changes and funding sources—like those from Emona Capital—provides valuable insight into shifting priorities and opportunities for growth or adjustment.
