Don't Nod has 'temporarily paused' the development of two new games following a 'well-below expectations' sales of Jusant: Ghosts of New Eden and Banishers.

The French game studio Don't Nod is best known for developing the first two Life is Strange titles. It has "temporarily paused" work on two projects in development and refocused the design of another two after sales of Jusant: Ghosts of New Eden and Banishers: Ghosts of New Eden were well below expectations.

Don't Nod's CEO Oskar Guibert said, "We are clearly disappointed by our recent performances in an extremely selective and competitive market," in a statement about the studio's first-half financial results for 2024.

"Despite an excellent reception from critics, Jusant & Banishers: The Ghosts of New Eden unfortunately did not achieve commercial results that we had hoped for. This resulted in a decline in our half-year 2024 results, and led us to consider all options regarding our roadmap."

Jusant is a great game. We called it a "2023 standout" in 89% review. It's built around "joyful climbing and fascinating storytelling," which I can fully endorse. I began playing the game out of curiosity. I think it was the faint Far:Lone Sails vibe that initially sparked my interest. It didn't take long before I became completely engrossed. The climbing is thrilling but secondary to the tale, a lightly-woven story of loss and hope set in a magical, melancholy world.

Banishers received a 74% rating in its own review, as a game that is "rich in history, atmosphere, and horrific deeds." While I haven't played it myself, my friend who has, however, told me on more than one occasion that it is a delightful surprise, with excellent writing and characters.

Unfortunately, this did not add much. Don't Nod said that Jusant and Banishers performed "well below expectations." They attributed the small increase in sales to their older games Vampyr and Life is Strange. The net result is a EUR24 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.

Don't Nod stated that this decision would allow them to maximize the success of titles with the highest potential.

Don't Nod also explores other options that can be implemented as quickly as possible to enhance its operations and create value. This review aims to help Don't Nod compete more effectively in an industry that is constantly changing, and to meet the expectations of both players and partners while continuing to provide innovative, high-quality experience.

It's not fun to see work halted and ambitions lowered, especially from a studio who has produced so many interesting games. But the real worry is the inevitable layoffs that will follow when companies begin talking about securing operations and competing more effectively. Don't Nod is one of the few game studios to have avoided laying off staff in the past two years. This has been a bloodbath for games industry. But results like this do not bode well for immediate future.