Another blow for the French video game industry. Publisher Nacon announced on Wednesday that it has ceased payments and is requesting to be placed under court protection, due to the financial difficulties of its parent company, BigBen Interactive.
In a statement, the company acknowledges that its available assets are no longer sufficient to meet its current liabilities. It hopes that the initiation of these proceedings will allow it to maintain its operations, protect its employees, and renegotiate its debts within a secure framework. The decision of the Lille Commercial Court is expected in early March.
Concerns about employment in the French sector
Nacon's difficulties are directly linked to those of BigBen Interactive, a company specializing in console accessories. BigBen Interactive has initiated an amicable conciliation procedure to negotiate with its creditors after being unable to meet a loan payment of approximately €43 million since February 19th. Both companies, whose share prices have been suspended since February 20th following a sharp decline, have seen their valuations plummet in recent years. Nacon is now worth only around €28 million, compared to €9 million for BigBen.
Founded in 2019 and based in Lesquin (Nord), Nacon brings together 16 development studios, including Spiders, Cyanide, Kylotonn, and Eko Software, and boasts over a thousand employees. However, the publisher has been weakened by disappointing sales performance on some titles, such as the game The Lord of the Rings: Gollumreleased in 2023 and very poorly received by critics. In recent years, the company has also faced social tensions, with strikes in some studios protesting deteriorating working conditions and the risk of burnout.
Nacon's situation comes at a difficult time for the entire sector. After a surge in activity during the pandemic, the video game industry has been experiencing a slowdown for nearly two years, marked by layoffs and studio closures worldwide. In France, Ubisoft, the leading player in the sector, has also undertaken a major restructuring accompanied by a significant cost-cutting plan. The difficulties faced by Nacon, the third-largest French publisher after Ubisoft and Pullup, are exacerbating concerns about a sector that employs approximately 12,000 people in France.
