Life is Strange developer Don't Nod warned that it could run out of money by November

Auditors have warned that French studio Don’t Nod could run out of cash by November 2026 unless it secures new financing after major shareholder Tencent declined to provide further support, putting the studio’s next project at risk.

The details:

• A special audit report (via Gauthier Andres) says Don’t Nod had around 8.8 million euros in cash as of April 7, 2026, but internal forecasts predict that should it not find additional funding from outside sources, the company will run out of cash before the end of the year.
• Tencent, which holds a large stake in Don’t Nod, has told auditors it will not participate in a short‑term capital increase or co‑finance any of the studio’s games currently in development, withdrawing as a potential lifeline despite having previously invested heavily in the studio.
• The developer’s management is said to have spent months talking to “major players” about possible investment or publishing deals and has weighed up other cost-saving measures such as moving staff to contract positions and reducing the overall scope of its upcoming game, codenamed P14.
• Back in 2024, Don’t Nod confirmed that following the underperformance of its game releases, it would be restructuring the company, leading to the potential loss of 69 jobs. Despite strike action in response to the decision, the company has continued to struggle, making further cuts in June 2025.