Don’t Nod, the creative force behind the acclaimed titles Jusant and Banishers: Ghosts of New Eden, finds itself navigating turbulent waters following a disappointing commercial performance. Despite receiving praise from critics, both games fell short of the financial expectations set by the company, leading to an 11% decline in operating revenue for the first half of 2024. This downturn has prompted Don’t Nod to issue a profit warning and reassess its development strategy.
Strategic Adjustments and Financial Implications
In a recent press release, chairman and CEO Oskar Guilbert expressed the company’s disappointment, stating, “Despite an excellent critical reception, Jusant and Banishers: Ghosts Of New Eden unfortunately did not achieve the commercial results we had hoped for.” The company anticipates a loss of approximately €1 million for the first half of 2024, necessitating a write-down of assets for both titles to align their book values with market realities.
In light of these challenges, Don’t Nod is implementing significant changes to its game development pipeline. Two unannounced projects, codenamed P10 and P14, are now under scrutiny, with a focus on enhancing their appeal to a broader audience. The press release indicates that the design of P10 has been refocused, although it remains unclear whether this project has been entirely scrapped. Additionally, two other projects in the design phase, P12 and P13, have been temporarily paused, resulting in a write-down of €7.6 million. This strategic pause aims to concentrate resources on the titles deemed most promising.
Amidst these adjustments, Don’t Nod is pinning its hopes on Lost Records: Bloom & Rage, a project being developed by their Montreal team, which includes talent from the popular Life Is Strange series. The game has garnered positive early feedback from the press, yet the company is simultaneously pursuing discussions with industry leaders to secure economic benefits, leaving the future of this title somewhat uncertain.
Alongside these in-house projects, Don’t Nod is also working on two unspecified external publishing projects slated for release in 2025. However, the press release does not clarify whether the company plans to revise its approach to these initiatives in light of recent developments.
The current situation has raised eyebrows within the industry, particularly among the French video game union workers. Concerns have been voiced regarding Don’t Nod’s management practices, with claims of a lack of long-term vision for employee welfare and frequent changes in project direction. As the studio grapples with these internal and external pressures, the fate of its developers remains a poignant consideration in this evolving narrative.
