The weekend was heavy on fans of Life is Strange. French journalist Gauthier Andres reported that developer Don’t Nod was set to run out of cash within the next five months, following a refusal from Tencent to invest more funds into the studio.
The information was based on public filings, but Don’t Nod has since come out to confirm the findings and offer a sliver of hope for the studio’s survival.
As reported by Bryant Francis of Game Developer, Don’t Nod issued a statement validating Tencent’s decision to cease funding for the time being. The company clarified that, at least for the time being, this is being treated as a temporary setback, with Tencent still playing a role as a “long-term shareholder” in the studio.
Until the parties work things out, Don’t Nod says it has a plan, and I’m left here hoping it’s not one of Dutch’s famous ploys in Red Dead Redemption 2.
Don’t Nod is Chasing Multiple Lifelines
It seems that the leadership at Don’t Nod had at least a semblance of a plan B for this situation, though the statement declines to go into great detail.
Per Game Developer, Don’t Nod execs are pursuing “several levers to extend its cash runway and strengthen its financial position.” These potential lifelines are being worked on in parallel with a cost-reduction plan.
At least for the time being, this is being treated as a temporary setback, with Tencent still playing a role as a “long-term shareholder”
There are no public specifics as of yet, but given the current climate in the gaming industry, especially in the wake of the XBOX mass culling by CEO Asha Sharma and COO Matt Booty, these “cost-reduction” measures start with ‘lay’ and end with ‘offs.’
Don’t Nod is no stranger to restructuring, with multiple layoff waves at both its French and Canadian hubs in recent years. The developer has most recently released Aphelion this April, a narrative survival title that was heavily marketed due to its partnership with the European Space Agency.
While I greatly enjoyed Aphelion, the critic reviews remained lukewarm at best, and it doesn’t seem like it made anywhere close to the splash it needed to push Don’t Nod out of the red.
Now the future of the company is in the hands of investors and executives with a daunting task ahead to save one of the most iconic narrative game studios ever. It might take a miracle, but hey, life is strange, right? I’ll see myself out.
