Don’t Nod, known for the Life is Strange series, is facing significant challenges. In 2024, its games Jusant and Banishers: Ghosts of New Eden sold poorly, leading to a pause in the development of two new titles. By 2025, after the release of Lost Records, the studio laid off several employees due to unsatisfactory sales.
A recent financial update indicated that its third-person adventure game Aphelion did not revitalize the company’s finances, reporting a 56% decline in year-on-year operating revenue. This decline was largely attributed to poor sales and increased development costs, including an expensive collaboration with Netflix.
The outlook is dire, with warnings about financial sustainability beyond January 2027. The company plans to streamline operations in France, potentially resulting in the layoffs of up to 90 positions. This restructuring has been approved by the board and is ongoing amid a wider trend of layoffs in the gaming industry, notably exemplified by recent cuts at Microsoft.
