Don't Nod, the French studio known for narrative titles such as Life is Strange 1 & 2, Lost Records, and Jusant, is reportedly facing a critical financial situation. According to a new financial report, the developer and publisher's cash reserves may be depleted as early as November.
Disclosures indicate that Tencent, a co-owner with a 42 percent stake acquired in 2021, has no interest in funding Don't Nod's next project or increasing its investment. The auditors' report, first highlighted by journalist Gauthier 'Gautoz' Andres and detailed by French outlet Gamekult, revealed that Don't Nod held €8.8 million in cash as of April. Studio president Oskar Guilbert has been actively seeking other publishers to fund the company, but these discussions have yet to yield any concrete commitments.
Project Adjustments and Industry Context
The immediate implications for the studio remain unclear, but the situation could lead to staff reductions. Don't Nod is reportedly scaling back plans for its next game, codenamed Project P14, with the possibility of an earlier release and a reduced scope. The studio's board of directors is scheduled to meet on June 17 to discuss potential solutions.
This is not the first instance of financial difficulty for Don't Nod. Earlier in 2025, the studio implemented unspecified layoffs at its Montreal office. In 2024, a redundancy plan was announced following the underperformance of its climbing game Jusant and the role-playing title Banishers: Ghost of New Eden.
Don't Nod's predicament reflects broader challenges within the industry, where major publishers have been withdrawing funding commitments for independent studios. Examples include NetEase abandoning support for the Yakuza series creator's next game, Gang of Dragon, and subsequently shutting down Bad Brain Studios. Tencent also recently shuttered TiMi Montreal, a studio composed of former Ubisoft talent that was working on a triple-A open-world game.