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Lyrical Games Announces Full‑Financing Publishing Deal with The Chinese Room
•February 19, 2026
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Why It Matters
The agreement demonstrates a viable funding model for mid‑tier games, giving developers capital without sacrificing IP, which could reshape publishing dynamics in a fragmented market.
Key Takeaways
- •Lyrical provides full financing, retains developer IP
- •Deal targets “lost middle” double‑A games
- •Pricing aim $40‑$50 per game
- •Chinese Room can focus on player experience
- •Lyrical aims reputation‑driven publisher model
Pulse Analysis
The video‑game publishing landscape has long been polarized between mega‑budget AAA studios backed by deep‑pocket publishers and indie developers scrambling for limited resources. This dichotomy leaves a sizable “lost middle” – projects that require more than a modest indie budget but lack the blockbuster clout to attract traditional publishers. Lyrical Games entered the market to occupy that gap, branding itself as a financier for double‑A titles that can deliver AAA‑level polish at sub‑$10 million budgets, a sweet spot that aligns with emerging consumer price expectations of $40‑$50 per copy.
Under the new agreement, Lyrical will fully fund The Chinese Room’s upcoming projects, handling production logistics and market launch strategies while allowing the studio to retain full ownership of its intellectual property. This structure contrasts sharply with many contemporary publishing deals that often demand IP rights or partial funding, creating friction and legal overhead for developers. By guaranteeing financial stability and preserving creative control, the partnership enables The Chinese Room to concentrate on elevating player experience, a promise echoed by CEO Ed Daly, who highlighted the relief of not having to juggle fundraising and day‑to‑day development concerns.
If successful, Lyrical’s model could inspire a wave of similar arrangements, encouraging other mid‑tier publishers to adopt full‑financing, IP‑friendly contracts. Such a shift would not only broaden the pool of high‑quality, mid‑budget games available to consumers but also reduce the litigation risk that often deters talented studios from partnering with larger entities. As the industry continues to grapple with funding volatility, reputation‑driven publishers like Lyrical may become the preferred conduit for developers seeking both financial backing and a trustworthy partnership.
Deal Summary
Independent publisher Lyrical Games announced a full‑financing publishing agreement with The Chinese Room, the studio behind Still Wakes The Deep and Vampire: The Masquerade – Bloodlines 2. Under the deal, Lyrical Games will provide complete financing, strategic production support and go‑to‑market planning while allowing The Chinese Room to retain creative autonomy and IP ownership. Financial terms were not disclosed.
Article
Source: Game Developer (formerly Gamasutra)
Lyrical Games announces full‑financing publishing deal with The Chinese Room
Bryant Francis, Senior Editor, GameDeveloper.com
February 19 2026
Logos via Lyrical Games and The Chinese Room
Independent games publisher Lyrical Games has announced a new major deal with Still Wakes The Deep and Vampire: The Masquerade – Bloodlines 2 developer The Chinese Room. The deal paints a picture of both companies’ immediate plans as they (like many developers) navigate the turbulent waters of the current industry.
According to an announcement shared with Game Developer, Lyrical Games will provide “full financing, strategic production support, and collaborative go‑to‑market planning while preserving the studio’s creative autonomy and IP ownership.” This type of publishing deal is rather uncommon in the game industry as of late, with some publishers taking ownership of intellectual property or only providing partial funding of the games they sign.
The news is no doubt welcome for the recently‑independent studio, which laid off an unknown number of employees in 2025 after splitting from Sumo Digital. CEO Ed Daly later explained to Game Developer that some of those laid‑off staff secured positions at Sumo Digital before the two companies officially part‑ed ways.
Daly stated in the announcement that the deal allows The Chinese Room to “focus on elevating the player experience” while Lyrical Games “ensures that the game reaches those players.”
Lyrical Games is looking to fill “the lost middle” in video‑game financing and publishing
During DICE 2026, one developer referred to Lyrical Games as “the belle of the ball,” alluding to the fact that many developers were pitching them at the show, as they were one of the few companies present looking to fund double‑A games.
“It’s interesting to hear you say that,” said Lyrical Games CEO Blake Rochkind in an interview with Game Developer when asked about that description. “On the one hand that’s flattering, on the other hand it’s not totally surprising.”
He said that Lyrical is looking to fill what many in the industry refer to as a “lost middle,” generally describing a type of game that players crave between major releases and small indies.
In his view, the “lost middle” is more about financing availability. “Financing is a differentiator for us,” he said, noting that the widely‑praised Clair Obscur: Expedition 33 was produced for less than $10 million, and using that game as a benchmark for the budget tier and quality scale Lyrical hopes to pursue. Just like Expedition 33, Rochkind expects these games to sell for $40–$50, a pricing trend observed by others at DICE.
Lastly, Rochkind explained what he hopes to offer developers: himself and the rest of the Lyrical Games team. When developers sign deals with publishers, even the strongest contract can become worthless if the partner is untrustworthy, because developers may spend valuable time litigating. Rochkind wants Lyrical to be the opposite of that experience, so developers choose the company because of its reputation.
“I think we have a well‑earned reputation for treating developers with respect and kindness,” he said. “It’s still a business but not only is it my natural inclination to be good to developers, I think it’s good business to be good to developers.”
“At the end of the day there are publishers out there who don’t have good reputations, and I think by virtue of having poor reputations they get the least exciting stuff. The best developers and the best games will naturally pick the people who don’t treat developers as their last choice.”
About the Author
Bryant Francis – Senior Editor, GameDeveloper.com
Bryant Francis is a writer, journalist, and narrative designer based in Boston, MA. He currently writes for Game Developer, a leading B2B publication for the video‑game industry. His credits include Proxy Studios’ 4X strategy game Zephon, Iron Anchor Studios’ Down With The Ship, and Amplitude Studio’s 2017 game Endless Space 2.
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