Life is Strange studio warns this year could be its last

Time may be running out for developer Don't Nod. The studio behind the original Life is Strange, Lost Records: Bloom & Rage, Jusant, and more has announced it is currently uncertain if it will be able to operate beyond next January. The timing couldn't be worse for the 18-year-old developer, which is set to have a television series adaptation arrive on Prime Video as early as next year. According to the studio's financials for the first half of 2026, Don't Nod's total operating revenue marked a 56% year-over-year decline. This coincided with a decline in sales for the studio and an increase in development costs. Don't Nod points to widespread industry issues as part of the problem as well, saying that the current video game market is "characterized by highly selective financing and changing conditions for accessing the resources necessary for production development, while commercial success is becoming increasingly difficult to achieve." To combat this, the studio is enacting an aggressive "transformation project" to stay alive as long as possible. As such, Don't Nod is refocusing operations in France around a single production line which it hopes will help "maintain a continuous pipeline of projects and support the company's long-term growth." This plan may also lead to the elimination of up to 90 positions. Don't Nod is working on project P14 Image: Don't Nod Montréal via Polygon Don't Nod most recently released the sci-fi game Aphelion earlier this year. While the central relationship of the game was a bright spot, critics were incredibly mixed on the title, and it seems sales did not meet expectations. Looking forward, Don't Nod is in production on a game internally called P14 . According to the latest financial report, P14 did not meet funding goals despite "expressions of interest." The project has not been officially revealed or shown off yet. With only a few months left before the ominous Jan. 31, 2027 date arrives, it remains to be seen if Don't Nod will manage to secure funding for P14 before money runs out or if Aphelion will be its last game.