Don't Nod is 'temporarily pausing' work on two new games after sales of Jusant and Banishers: Ghosts of New Eden fall 'well below expectations'

French game studio Don't Nod, best known as the developer of the first two Life is Strange games, is "temporarily pausing" work on two in-development projects and refocusing the design of two others after sales of Jusant and Banishers: Ghosts of New Eden fell well short of expectations.

"We are obviously disappointed by our recent performance in an extremely competitive and selective market," Don't Nod CEO Oskar Guilbert said in a statement on the studio's 2024 first-half financial results. 

"Despite an excellent critical reception, Jusant and Banishers: Ghosts of new Eden unfortunately did not achieve the commercial results we had hoped for, resulting in a deterioration in our 2024 half-year results and leading us to consider all possible options regarding our roadmap."

Jusant is outstanding: We called it "a 2023 standout" in our 89% review, built around "joyful rock climbing and fascinating storytelling," and that's a position I can endorse. I started playing out of idle curiosity—I think the faint Far: Lone Sails vibe is what initially sparked it—and it took almost no time before I was completely drawn in. The climbing is exhilarating but secondary to the story, a lightly-woven tale of loss and hope in a melancholy, magical world. 

Banishers earned a 74% in its own review as a game "rich in atmosphere, history, and horrible deeds," and while I've spent no time with it myself, a friend who's familiar with such things has told me more than twice that it's an unexpected (if also often sad) delight, with outstanding writing and characters.

Sadly, that did not add up to much. Don't Nod attributed a small increase in sales over the first half of the year to its older games, Vampyr and Life is Strange, while Jusant and Banishers "performed well below expectations." The net result is a €24 million ($26.7 million) write-down—essentially a loss in value—on the two games, "given the inability to demonstrate future cash flows commensurate with the value of these assets," and changes to Don't Nod's future plans: Two unannounced games in development, slated to be out before the end of 2027, have been "refocused to reach a wider audience, which involves scrapping certain developments," while two others have been temporarily paused.

"This decision will enable us to prioritize resources and maximize the chances of success of the titles with the greatest potential at present," Don't Nod said.

"Don't Nod is also exploring other options that could be implemented as soon as possible to secure its operations and enhance value creation. The purpose of this review is to give Don't Nod the ability to compete more successfully in a constantly evolving industry, and to respond effectively to the expectations of players and partners, while continuing to offer innovative, high-quality experiences."

As much as it sucks to see work suspended and ambitions attenuated, particularly from a studio that's done such interesting games over the years, the greater worry is the seemingly-inevitable layoffs that result when companies start talking about securing their operations and competing more successfully. Don't Nod feels like one of the few studios that's avoided cutting staff over the past two years, which has been a full-on bloodbath for the games industry, but results like this don't bode well for the immediate future.