Little Nightmares creators Tarsier Studios to "focus on creating new IPs" (UPDATE)

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Little Nightmares creators Tarsier Studios to


Bandai Namco has reached out with a brief statement on the future of Little Nightmares:

"We have nothing to announce at this moment, but since we received so much love from fans all around the world with the release of LN2, we feel energised to deliver more content in the future."


Tarsier Studios, creators of the Little Nightmares series, "will, from now on, focus on creating new IPs", which leaves the future of the acclaimed horror series in limbo.

Tarsier's parent company Embracer Group revealed its Q3 earnings report, which read: "After the quarter Tarsier studios game Little Nightmares 2 was published external publisher and was well received by its audience. Tarsier studios will, from now on, focus on creating new IPs."

In a webcast that followed the report, Embracer CEO Lars Wingefors elaborated on this new information: "I'm super-thrilled, and I spoke to the CEO of Tarsier the other day and congratulated him [on] the critical success of Little Nightmares 2. It's an IP they created, but it's owned by Bandai Namco and published by Bandai Namco, so it doesn't really have any significant commercial impact for us, even though if it does really well, it could have some royalty revenues over time."

Tarsier Studios was acquired by Embracer in December 2019, which followed the Little Nightmares 2 earlier in the year. This suggests that development on the sequel was already underway with publisher Bandai Namco when the acquisition was finalised.

Wingefors went on to say, "But I'm super excited about them achieving such a game again because the first game was very well received, and this game looks as well received. Now, having that game created, they will move over to create new IPs, and I'm super excited, and that was the main reason we made this acquisition a bit over a year ago."

This means Tarsier will begin to develop new IPs that Embrace Group can claim ownership of, meaning more revenue for them, while Bandai Namco would be free to hand over the development of a third Little Nightmares game to a new studio if they so choose.

You can read our 10/10 review of Little Nightmares II and decide if you are brave enough to try it yourself.

We have reached out to the parties involved for comment.

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