Updated. French outfit Dontnod Entertainment may not be around much longer.
Gamasutra reports, citing several French sources, that Remember Me developer Dontnod Entertainment has filed for bankruptcy. The studio founded by former Criterion and Ubisoft employee Oskar Guilbert.
The large studio, around 100 people, were working on their next project following Remember Me - a game they were not yet ready to talk about with the press. Remains to be seen if Dontnod can bounce back from this or if this spells the end of the studio.
As of right now there is no official word from Dontnod Entertainment.
Update: Dontnod's Oskar Guilbert has spoken to GamesIndustry.biz stating "there is no bankruptcy". However it should be noted that the redressement judiciaire, the French equivalent and seen as a last attempt to avoid liquidation of company assets. While, not bankrupt the company receives some protections while attempting to reorganise.
"We are in something called in France 'judicial reorganisation' which allows us to re-adapt our production pipeline to the new situation. Because as you know we finished a game called Remember Me for Capcom which was out in June 2013, last year. This game, I think it's important to mention, is number two in terms of downloads on PlayStation Plus in Europe, so it's a big success on the digital side at least."
"We started new projects and those new projects need some investment and we decided to resize the company in order to match these new needs. That's why we needed judicial reorganisation."
Guilbert also mentioned they are in negotiations with a publisher on their next project, and clearly if a deal is signed it would change Dontnod's situation dramatically.
For now, it is clear that Dontnod is going through changes, and that they are on the ropes, but not necessarilly out.