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:
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