Don't Nod faces potential closure by 2027 amid revenue drop

Don't Nod, the French developer behind the ‘Life is Strange’ franchise, is facing a severe financial crisis that could lead to the studio closing by late January 2027. According to financial reports for the first half of 2026, the company’s revenue plummeted by 56% compared to the same period last year, falling to 6.1 million euros.

The decline is attributed to poor sales of recent titles, including ‘Lost Records: Bloom and Rage’ and the space adventure game ‘Aphelion’, which saw extremely low player engagement on Steam. In response, the board has approved a restructuring plan that includes laying off up to 90 employees and consolidating operations into a single production line at its French headquarters to reduce costs.

Financial stability remains uncertain as cash reserves have dropped from 15.4 million euros at the end of 2025 to approximately 8 million euros by late July 2026. The studio’s survival depends on securing external funding, as major shareholder Tencent has declined to provide additional capital or increase its stake at this time.