Don’t Nod Entertainment, the development studio behind several popular titles such as Life is Strange (2015), Tell Me Why (2020), and Lost Records: Bloom and Rage (2025), released a public financial report regarding funding for future projects earlier this month. This report shares information that followers of the studio find upsetting, though it seems to be on par with what some other independent studios struggling to stay afloat are facing.
Currently, Don’t Nod has two major studio locations: one in Paris, France, and the other in Montreal, Canada. The main location, Paris, was founded in 2008, while Montreal, the secondary studio, opened in 2020, resulting in both locations employing a total of over 250 employees. However, in 2025, Don’t Nod laid off over fifty employees in a company-wide restructure.
Dans le cadre de l’exercice de notre mission, nous avons relevé les faits exposés ci-après que nous avons considérés de nature à compromettre la continuité d’exploitation de votre Société et qui nous ont conduit à mettre en œuvre la procédure d’alerte prévue par la loi.
In a public legal document addressed to shareholders, Don’t Nod Entertainment’s assigned statutory auditors share that, as translated from the original statement above, “in the course of carrying out our duties, we have identified facts set forth below, which we consider likely to jeopardize the continued operation of your company.” They go on to explain that while the studio did have access to €8.8 million this past April, this is only six to seven months worth of funding.
Furthermore, Don’t Nod’s primary investor, Tencent, is currently refusing to front more money for future projects. Possible solutions to keeping the studio afloat include more layoffs, finding other major investors, and simplifying upcoming projects, such as Project P14, resulting in an earlier release date. The board of directors met earlier today to discuss these potential solutions, though the documents are currently not available to the public. All legal documents are written in French and are viewable on the official Don’t Nod Entertainment website under the investor tab.