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Message: <blockquote data-quote="Admin" data-source="post: 71622" data-attributes="member: 1"><img src="https://assets-prd.ignimgs.com/2025/02/19/lrbr-oo-1740004470051.jpg" alt="" class="fr-fic fr-dii fr-draggable " data-size="" style="" />French developer Don't Nod will run out of cash this November, unless a new funding source is found.That's according to a financial report by auditors for the firm <a href="https://www.dontnod-bourse.com/fr/informations-financieres/assemblee-generale/" target="_blank">published</a> this month, which highlighted the dire straits the studio now finds itself in.Headquarted in Paris with a satellite studio in Montreal, Don't Nod is best known for creating the narrative adventure game series Life is Strange, though more recent entries have been made elsewhere. A spiritual successor, Lost Records: Bloom & Rage, finally emerged in February 2025 but underperformed.The company has been searching for a hit in recent years, amid a string of releases that have failed to set tills ringing, including Harmony: The Fall of Reverie, Jusant, Banishers: Ghosts of New Eden, and this year's sci-fi action adventure Aphelion.Now, Don't Nod has been warned it has five months of capital remaining — unless further investment is located imminently. The company is part-owned by Tencent, though auditors have revealed that the Chinese conglomerate is no longer interested in providing further short-term funds."Your chairman has informed us that he has been seeking additional financing for several months and that all avenues are being explored to improve the company's cash position, whether through a capital increase or external financing for your game currently in development," auditors wrote."The company management informed us that, according to its cash flow forecasts, without additional financing and taking into account, among other things, revenue assumptions related to the marketing of a new game at the end of April 2026 [Aphelion] and cost savings that have not yet materialized, the company is expected to run out of cash during November 2026."Your chairman also informed us that, following his requests, your main shareholder, Tencent, does not wish to subscribe to a capital increase in the short term nor contribute to the financing of games currently in development through co-production agreements."Finally, your Chairman indicated that discussions have been underway with some major players in the video game industry for several months, but that these discussions have not resulted in any structured financing offers. Given the situation, we have determined that the aforementioned facts are likely to jeopardize the continued operation of your company."Solutions currently being explored include funding from another major partner, launching the studio's unannounced next game sooner (earlier in 2027 than planned), or assigning staff to work-for-hire subcontracting work on external projects. As yet, however, no solution has been found.It's currently a bleak time for the video game industry, with <a href="https://www.ign.com/articles/ninja-theory-and-double-fine-also-reportedly-under-threat-of-closure-as-xbox-studios-fight-for-survival" target="_blank">widespread layoffs and likely studio closures currently under discussion at a raft of studios owned by Microsoft</a>.Tom Phillips is IGN's News Editor. You can reach Tom at <a href="mailto:tom_phillips@ign.com">tom_phillips@ign.com</a> or find him on Bluesky <a href="https://bsky.app/profile/tomphillipseg.bsky.social" target="_blank">@tomphillipseg.bsky.social</a><a href="https://www.ign.com/articles/life-is-strange-creator-dont-nod-warned-it-will-run-out-of-funds-this-year" target="_blank">Continue reading...</a></blockquote>

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