During its financial report, Embracer Group stated Tarsier Studios would be moving on to create new IPs, suggesting the developer would be leaving Little Nightmares behind. In a statement to IGN, Tarsier has confirmed they have indeed ended development on the franchise. However, publisher Bandai Namco still has the opportunity for it to continue.

Tarsier Studios joined Embracer Group at the end of 2019. Although the purchase of the studio did also include the developer’s IPs, not all of the original IPs on which the studio has worked belong to Tarsier. Little Nightmares belongs to Bandai Namco, while Stretchers belongs to Nintendo. Now the studio has finished work on Little Nightmares II, they’ll be leaving the franchise behind, as confirmed by CEO Andreas Johnsson:

For the last 6 years, our mission at Tarsier Studios has been to create mesmerizing worlds. Little Nightmares was our first attempt and was a huge success. I personally love how Little Nightmares has gathered fans around the world over the course of the last 4 years. From the fan art, extensive fan theories and genuine reactions, it all has been amazing to witness. Our collaboration with Bandai Namco Entertainment Europe has been extremely satisfying, they listened to our creative vision and took our crazy ideas and ambitions to heart.

That being said, it is bitter sweet to announce that we are leaving the world of Little Nightmares behind us. Little Nightmares will always be dear to us at the studio. Since being acquired by the Embracer Group in December 2019, it is now time for us to embark on a new chapter, create new IPs and explore new worlds. Personally I am very excited to see what our studio creates and counting down the days until we can welcome our fans.

Bandai Namco has nothing to announce about the fate of Little Nightmares at this time, but did hint that “since we received so much love from fans all around the world with the release of Little Nightmares II, we feel energised to deliver more content in the future”. Whether this will be a new title in the franchise or DLC for the second game remains to be seen.

[Source: IGN]