Don’t Nod, the French studio behind Life is Strange 1 & 2, Lost Records, Jusant, and most recently Aphelion, could soon be dealing with serious financial strain. In a new financial report, the developer and publisher states that its cash reserves might run out as soon as November.
According to the information provided, Don’t Nod’s co-owner, Tencent, shows no intention of backing the studio’s upcoming release, and also has no plans to expand its financial support. Tencent bought shares in Don’t Nod during the post-pandemic rebound in 2021, and it now holds a 42 percent interest in the company.
This worrying audit finding was first brought to attention by journalist Gauthier ‘Gautoz’ Andres on BlueSky. Gamekult later examined the document, noting that Don’t Nod had €8.8 million in cash as of April.
Studio head Oskar Guilbert said that management is looking into other possibilities—particularly alternative publishers willing to fund the studio. Still, none of these conversations have produced any concrete commitments from prospective partners.
It’s not yet clear what this could mean for the studio, but it’s reasonable to expect that budget reductions and layoffs may follow. With that in mind, the company seems to be revisiting its plans for Project P14, its next game currently in development. Gamekult notes that the title might arrive earlier than expected if it ships with a smaller scope.
Don’t Nod’s board of directors is scheduled to convene on June 17th to discuss potential solutions.
These are tough circumstances for many studios across the industry, and it isn’t the first time Don’t Nod has faced obstacles. In early 2025, the studio let go of an unspecified number of employees from its Montreal office. In 2024, the developer also revealed a redundancy plan after Jusant and the role-playing game Banishers: Ghost of New Eden failed to perform as expected.
On a wider front, large publishers have been pulling back on their willingness to finance independent studios. NetEase—another Chinese company—stepped away from backing the next project from Yakuza creator’s team, Gang of Dragon, after the studio asked for additional money to finish the game.
In November of last year, NetEase shut down Bad Brain Studios, a group made up of former Watch Dogs: Legion developers. Earlier this year, Tencent also closed TiMi Montreal, a studio staffed by former Ubisoft talent that primarily worked on a triple-A open-world project, along with other productions.