French developer Don’t Nod will run out of money this November, except a brand new funding supply is discovered.
That is in line with a monetary report by auditors for the agency published this month, which highlighted the dire straits the studio now finds itself in.
Headquarted in Paris with a satellite tv for pc studio in Montreal, Don’t Nod is greatest recognized for creating the narrative journey sport collection Life is Strange, although newer entries have been made elsewhere. A religious successor, Misplaced Data: Bloom & Rage, lastly emerged in February 2025 however underperformed.
The corporate has been trying to find successful in recent times, amid a string of releases which have didn’t set tills ringing, together with Concord: The Fall of Reverie, Jusant, Banishers: Ghosts of New Eden, and this yr’s sci-fi motion journey Aphelion.
Now, Don’t Nod has been warned it has 5 months of capital remaining — except additional funding is situated imminently. The corporate is part-owned by Tencent, although auditors have revealed that the Chinese language conglomerate is now not eager about offering additional short-term funds.
“Your chairman has knowledgeable us that he has been looking for extra financing for a number of months and that every one avenues are being explored to enhance the corporate’s money place, whether or not via a capital improve or exterior financing on your sport presently in growth,” auditors wrote.
“The corporate administration knowledgeable us that, in line with its money move forecasts, with out extra financing and making an allowance for, amongst different issues, income assumptions associated to the advertising and marketing of a brand new sport on the finish of April 2026 [Aphelion] and price financial savings that haven’t but materialized, the corporate is anticipated to expire of money throughout November 2026.
“Your chairman additionally knowledgeable us that, following his requests, your most important shareholder, Tencent, doesn’t want to subscribe to a capital improve within the quick time period nor contribute to the financing of video games presently in growth via co-production agreements.
“Lastly, your Chairman indicated that discussions have been underway with some main gamers within the online game trade for a number of months, however that these discussions haven’t resulted in any structured financing gives. Given the scenario, now we have decided that the aforementioned info are more likely to jeopardize the continued operation of your organization.”
Options presently being explored embrace funding from one other main associate, launching the studio’s unannounced subsequent sport sooner (earlier in 2027 than deliberate), or assigning workers to work-for-hire subcontracting work on exterior tasks. As but, nevertheless, no resolution has been discovered.
It’s presently a bleak time for the online game trade, with widespread layoffs and sure studio closures presently beneath dialogue at a raft of studios owned by Microsoft.
Tom Phillips is IGN’s Information Editor. You’ll be able to attain Tom at tom_phillips@ign.com or discover him on Bluesky @tomphillipseg.bsky.social