Earlier this year, it was revealed that Don’t Nod is in a lot of trouble, with Tencent pulling funding for the studio. The developer behind the original Life is Strange has been looking for a new publisher ever since, but with no new financial backers stepping up, the studio itself has admitted it could be months away from closure.
The latest grim update on the present, and potential future, of Don’t Nod comes from the developer’s own financial report, as spotted by Instant Gaming News. A table near the top of the report shows that both revenue and total operating revenue are significantly down versus last year, pinning the blame on a “challenging marketing environment”.
It’s a note later on in the report that will be the most concerning for fans of Don’t Nod’s games. It confirms that based on available cash, “the company's ability to continue operations depends partly on securing external financing to cover business operation and project development needs.”
“This represents material uncertainty regarding the company's ability to continue as a going concern beyond January 31, 2027,” the report reads. That means, based on Don’t Nod’s current financial state, if the studio doesn’t find someone to fund it in the way Tencent used to within the next four months, then the studio may well fold by the end of January 2027.
The report goes on to explain that it currently exists in a very different video game market to the one it successfully operated in a few years ago. It also readily admits that its more recent projects have failed to find commercial success despite the “recognized quality” of its earlier games. Those renowned titles include Life is Strange and Life is Strange 2, Vampyr, and Tell Me Why.
Don’t Nod has continued to make Life is Strange-like games even after Square Enix handed the development reins for the series to Deck Nine. The most recent example is Lost Records: Bloom & Rage. Effectively a spiritual successor to the Life is Strange series developed by its original creators. However, based on the position Don’t Nod currently finds itself in, that two-part game didn’t hit as hard as it might have if it had LiS in the title.
I’d have said there might be a chance of Don’t Nod and Square reuniting for a new Life is Strange game, but now I’m not so sure. Don’t Nod previously said it had no interest, suggesting the relationship between the studios might be broken. Deck Nine’s more recent Life is Strange offerings haven’t hit nearly as hard as Don’t Nod’s entries in the series. If there is any way that relationship can be repaired, it needs to happen fast, as it seems like Don’t Nod doesn’t have much time left.
سەرچاوەی فەرمی بە زمانی ئینگلیزی: https://www.thegamer.com/life-is-strange-studio-dont-nod-close-january-2027/
