By Jacob Miller | Sep 09, 2026
Don't Nod has certainly created its share of hits over the years, but its recent work has faltered badly. Released in 2025 to largely positive reviews, Bloom and Rage had, by October, underperformed commercially, the studio confirmed. Its follow-up release Aphelion released in 2026 to mixed critical reception and performed significantly worse, peaking at just 219 concurrent players on Steam.
Financial report paints troubling picture
Don't Nod has issued a financial update outlining its results for the first six months of 2026 and how it intends to respond to the growing challenges it now faces. The report revealed that revenue fell 56% year-over-year, generating only €6.1 million, or about $7.1 million USD, during that period. The studio has been struggling to remain competitive, even with past efforts, and has now implemented a restructuring plan that could mean job cuts for as many as 90 employees. The report states the restructuring is necessary to keep operations going given the current economic environment, broader challenges affecting the video game industry and what the studio described as a worsening of its main financial metrics. The report also pointed out the need for Don't Nod to get outside financing, warning that without it, there is real uncertainty as to whether the studio will be able to continue operating beyond January 31, 2027.
Studio Looking for Outside Funding as Restructuring Plan Approved
Don't Nod's board of directors has already approved the proposed plan, and talks with union-represented employees are reportedly already in progress. The studio will consolidate its operations into a single production pipeline entirely based in its home country of France under the new structure. This new model is meant to bring together the expertise required to kick off upcoming projects while current productions are still being finalized. By reducing its overall team size, reallocating internal resources and streamlining operations, the studio hopes it can stay afloat long enough to release new games, which could eventually help stabilize its finances if those titles perform well commercially.
This isn't the first time Don't Nod has spoken out publicly about serious financial concerns. In June, there were reports that the studio could be completely out of money by November. The timing of this newly announced restructuring plan would seem to be specifically designed to prevent that outcome from becoming a reality. Things get even more complicated for Don't Nod as major investor Tencent has also refused to pump in more money or increase its stake in the studio.
If the restructuring plan is successful, we can expect more updates on Don't Nod's future projects in the coming months, especially since the studio is worried about staying in business after January 2027. The wider gaming industry is still in a state of major flux, and it's hard to say whether Don't Nod will be able to stabilize and recover, or if it too will eventually join the growing list of studios forced to shutter for good.
