Do not Nod, greatest often known as the builders of Life is Unusual 1 and a couple of, has been having a tough go of it, currently. In 2024, its video games Jusant and Banishers: Ghosts of New Eden offered “properly beneath expectations”, inflicting it to pause improvement of two additional video games. Then, in 2025, it laid off a number of workers after Misplaced Data did not fairly make up the distinction.
Based mostly on this monetary replace (thanks, GamesIndustry.biz), its third-person journey sport Aphelion did not pull issues again from the brink, both. The developer reported a 56% lower in working income year-on-year, “amid systemic pressures within the online game business, characterised by extremely selective financing.”
This additionally introduced as a €3.5 million decline in gross sales within the first half of 2026, “pushed primarily by gross sales and the popularity of a portion of PS+ and Sport Move income from Bloom and Rage, preliminary gross sales of Aphelion, and the again catalog”, in addition to a rise improvement prices to the tune of €2.6 million due to an as-yet-unannounced collaboration with Netflix for “a story sport based mostly on a serious Netflix mental property.”
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It is a dire forecast, because it means there is a “materials uncertainty relating to the corporate’s capacity to proceed as a going concern past January 31, 2027.” In different phrases, Do not Nod is working out of cash, and quick.
Consequently, the studio’s seeking to scale back the quantity of plates it is presently spinning: “Do not Nod is refocusing its operations in France round a single manufacturing line, bringing collectively the experience required to launch new tasks earlier than the completion of present productions.”
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To do that, it will be present process a hefty restructure that will properly result in layoffs. Or, in company converse, a “workforce adjustment in France that will contain the discount of as much as 90 positions.” The undertaking to take action has already been accredited by its board of administrators, and negotiations are in place with its union.
Like a crack of thunder in a distant stormcloud, that is yet one more grim piece of reports after an already-severe 12 months for the business—one spearheaded in 2026 by Microsoft, which has laid off 1,600 staff and is quickly to put off 1,600 extra. It’s, as lead companies programmer Chris Hayes at id Software program put it, an indication that “there’s one thing unsuitable.”
