2023 Business Review: Don't Nod

Key insights

6 takeaways

01
DON'T NOD ended 2023 with a solid financial position of €54.3 million in available cash despite a challenging market environment.See it on page 2
02
Operating revenues grew 6.8% to €32.1 million, driven by a 16.8% increase in capitalized production to €26.8 million.See it on page 1
03
The studio recorded a €10.5 million non-cash write-off on its intellectual property portfolio, resulting in an adjusted operating EBIT of approximately €-1.4 million.See it on page 2
04
Development revenues dropped 61.4% due to project completions, though sales tripled to €2.9 million thanks to back catalog performance and the release of Jusant.See it on page 1
05
The company is narrowing its production focus to three core genres—action-RPG, action-adventure, and narrative adventure—to support a target cadence of two annual releases.See it on page 3
06
The current development pipeline consists of seven projects, comprising five in-house titles and two external collaborations.See it on page 3

Summary

The 2023 business review for the French independent studio DON'T NOD outlines a period of strategic transition characterized by increased investment in future game development and a refocusing of its creative portfolio. Operating revenues rose by 6.8% to €32.1 million, a growth driven primarily by a 16.8% increase in capitalized production, which reached €26.8 million. While development revenues declined by 61.4% due to the completion of specific projects, sales tripled to €2.9 million, bolstered by strong back catalog performance and the release of Jusant.

The studio faced a challenging, saturated market environment in 2023, which necessitated the postponement of Banishers: Ghosts of New Eden and impacted the short-term financial performance of Harmony: The Fall of Reverie. Consequently, the company implemented a non-cash write-off of approximately €10.5 million in fixed assets related to its intellectual property portfolio. Excluding this adjustment, the operating EBIT would have been approximately €-1.4 million. Despite these pressures, the studio maintained a solid financial position with €54.3 million in available cash at year-end.

Looking ahead, the studio is narrowing its production focus to three core genres—action-RPG, action-adventure, and narrative adventure—to maximize the potential of its intellectual properties. The development pipeline remains robust, with seven projects currently underway, including five in-house and two external collaborations. The company aims to maintain a cadence of two annual releases to ensure recurring revenue while leveraging a balanced model of self-publishing and co-production. This strategy is supported by the positive critical reception of recent titles, which serves as a foundation for the studio’s long-term growth objectives.