French developer Don’t Nod, the studio behind Life is Strange, Banishers: Ghost of New Eden and Lost Records: Bloom & Rage, has warned it could run out of money by November 2026. In a lengthy statement published around 16 June 2026, the studio confirmed that part-owner Tencent has declined both to increase the capital it provides and to finance a new Don’t Nod game, leaving the developer without the funding it needs to keep building new projects.
Tencent Pulls Back on Funding
The crux of the crisis is Tencent’s decision to step back. According to Don’t Nod’s own documentation, Tencent does not want to raise the capital it puts into the company, nor does it want to bankroll a new game from the studio. With its largest backer unwilling to provide that money, Don’t Nod faces a situation where its cash reserves could be exhausted by November, removing the runway it needs to fund development.
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Layoffs Likely, Closure the Worst Case
A reasonable read of the situation is that Don’t Nod will fight to stay in operation through further layoffs and downsizing, cutting its spend to free up funds. The worst-case scenario, however, is the Aphelion, Jusant, Lost Records: Bloom & Rage and Banishers: Ghost of New Eden developer being shut down for good. None of this is new territory for the studio, which has been in troubling financial waters for some time, with frequent layoffs over the past few years, and this latest warning reads as the next stage of that ongoing struggle rather than a sudden collapse.
For now, the November deadline sets the clock. Without fresh funding or a sharp reduction in costs, Don’t Nod’s ability to continue as a going concern past the autumn is the open question its statement leaves hanging.