Life is Strange developer DON'T NOD is facing serious financial pressure, with the company warning that it may not be able to continue operating beyond January 31, 2027 without additional financing.
The French studio reported €6.1 million in revenue for the first half of 2026. Its operating revenue fell by 56% compared with the same period last year, while the company recorded an operating EBITDA loss of €4.3 million.
DON'T NOD is burning through its cash
The company's cash position has also deteriorated significantly. DON'T NOD had €15.4 million in gross cash at the end of 2025. By the end of June 2026, that had fallen to €9.8 million, and by the end of July it had dropped further to €8 million.
That means DON'T NOD had around €7.4 million less cash than it did at the end of 2025 in just seven months.
The situation is serious enough that the company says its available cash and financial forecasts create a material uncertainty about its ability to continue as a going concern beyond January 31, 2027. DON'T NOD says it will need additional external financing in order to partly fund its operations and project development.
Up to 90 positions could be affected
DON'T NOD is responding to the financial pressure with a major restructuring of its French operations. The company plans to reorganize its teams around a single production line and focus its resources on priority projects.
The restructuring could involve the reduction of up to 90 positions in France. The company's board has approved the plan, while discussions with employee representatives and unions have started.
These are potential job reductions, not 90 confirmed layoffs. The final impact on employees will depend on the restructuring process and the ongoing discussions.
A studio behind several well-known games
DON'T NOD is best known internationally for narrative-driven games, with Life is Strange being its most recognizable series. The studio has also developed and released several other games over the years.
- Remember Me
- Life is Strange
- Life is Strange 2
- Vampyr
- Tell Me Why
- Twin Mirror
- Harmony: The Fall of Reverie
- Jusant
- Banishers: Ghosts of New Eden
- Lost Records: Bloom & Rage
- Aphelion
DON'T NOD is not shutting down
DON'T NOD has not announced that it is shutting down. The company is instead trying to cut costs, reorganize its French operations and secure additional financing.
However, the combination of falling revenue, a €4.3 million operating EBITDA loss and a rapidly shrinking cash reserve shows why the restructuring is necessary. Without additional financing, DON'T NOD itself warns that its ability to continue operating beyond January 2027 is uncertain.
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Webmastahhh is the creator of Mastanet, a gaming and technology website where he shares news, reviews, guides and personal insights about games, hardware, software and the future of digital entertainment.
