In a significant corporate restructuring, Secret Mode, the publishing label of UK-based Sumo Group, was spun out into an independent entity last year. This move preceded a major strategic shift announced by its parent company, Sumo Group, which is owned by Chinese technology conglomerate Tencent.
The separation occurred as Sumo Group prepared to refocus its entire business model. In February 2025, the group publicly stated it would concentrate exclusively on providing development services for external partners. This strategic pivot means the company will no longer develop or publish its own original video game titles.
Strategic Refocus for Sumo Group
Sumo Group’s new direction centers on offering co-development and support services to other game studios and publishers. This decision effectively ends its first-party game development efforts. Historically, the group and its studios have been responsible for major titles including Crackdown 3 and Sackboy: A Big Adventure.
Tencent, a global leader in gaming and social media, acquired Sumo Group in a deal valued at approximately 1.3 billion dollars in 2021. The recent strategic refocus represents a notable evolution in how Tencent is managing and positioning its UK-based subsidiary within the broader gaming market.
Implications for Secret Mode
The spin-off of Secret Mode positioned the publishing label to operate autonomously before the parent company’s strategic announcement. As an independent entity, Secret Mode is now free to pursue its own publishing strategy, secure external projects, and build its portfolio separate from Sumo Group’s service-oriented mandate.
This independence allows Secret Mode to potentially partner with a wider range of developers, including those outside the Tencent ecosystem. The label can now function as a traditional third-party publisher, acquiring, funding, and marketing games from independent studios.
Industry Context and Reactions
The video game industry has seen increased consolidation in recent years, with major acquisitions by companies like Microsoft, Sony, and Tencent. In this climate, Sumo Group’s decision to exit original game development and become a pure service provider is a distinctive strategic choice.
Analysts observe that this move allows Sumo Group to leverage its extensive development talent in a less risky business model. The service-based approach provides recurring revenue through contracted work, contrasting with the high financial uncertainty of funding and marketing original intellectual property.
The separation of Secret Mode provides a clear pathway for the group’s existing publishing operations to continue without conflicting with the new core business. It prevents potential client conflicts where Sumo’s service division might work on a game competing with a title published by Secret Mode.
Future Outlook and Next Steps
Looking ahead, the industry will monitor how both entities perform under their new structures. Sumo Group is expected to aggressively pursue co-development contracts, capitalizing on its established reputation and technical expertise. The success of this model will depend on its ability to secure long-term partnerships with major publishers and developers.
For Secret Mode, the immediate future involves establishing its brand identity as an independent publisher. Key activities will include announcing its inaugural slate of games, signing development deals with new studios, and building out its marketing and distribution capabilities. The label’s ability to attract compelling projects will be a primary measure of its post-spin-off viability.
Source: GamesIndustry.biz
