French video game developer Don’t Nod has reported a challenging six-month period with revenues of €1.87 million, marking a 29.7% drop compared to last year. The company also announced a net loss of €42.3 million, a significant increase from just €866k in the same period in 2023.
The financial struggles are largely due to the poor performance of two key games, Jusant and Banishers: Ghosts of New Eden. Don’t Nod has written down €24 million on these titles, explaining that future sales are unlikely to recover the development costs in what they call an “oversaturated market.”
In addition, the company paused work on two new projects and canceled another, leading to further losses of €7.6 million. However, development will continue on Lost Records: Bloom & Rage and other codenamed projects, P10 and P14.
Facing these difficulties, Don’t Nod has applied to resume trading on Euronext after a temporary halt and is undergoing a major restructuring. The company had previously divided its operations into three branches, focusing on action RPGs, action-adventure games, and narrative adventures, in hopes of strengthening its position in the AA+ game development sector. However, CEO Oskar Guilbert admitted these efforts were not enough to stay competitive.
As part of the restructuring, the company is considering layoffs that could impact up to 69 employees, or 19.7% of its workforce. Don’t Nod is also reevaluating its game portfolio, aiming to streamline internal processes and better align its projects with market demand.
In response to the disappointing results, Don’t Nod is making adjustments to its future plans. The studio will now focus more on its upcoming title Lost Records: Bloom & Rage, which will be released in two parts in February and March 2025. The goal is to maximize return on investment in the short and medium term.
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