Don't Nod is struggling, as Tencent is reportedly uninterested in backing the studio going forward. This comes after its recent releases failed to meet sales expectations, leading to layoffs.
As reported by French games news outlet Gamekult, auditors have sounded the alarm at Don't Nod, warning that the studio could go under by the end of the year. This is apparently because Tencent has refused to support the studio going forward, meaning that it must find new backers.
As noted by Gamekult, this analysis comes from journalist Gauthier 'Gautoz' Andres, who went through a series of Don't Nod's latest financial disclosures.
"Trouble is brewing at Don't Nod: an auditors' report warns of the studio's cash reserves being completely depleted by November," Andres says on Bluesky. "Tencent is unwilling to raise capital or finance any projects, and the bosses' plans are not reassuring."
According to Andres, the plan is to get a publisher to back Don't Nod's next game. This will be easier said than done, as it seems to be struggling to get games off the ground.
"Their latest project, which was more or less in development, was recently scrapped after their investor withdrew," says Andres. "Everything hinges on the...
