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Little Nightmares 2 Developer Isn't Working on Sequel

Tarsier Studios' parent company Embracer Group hints at no plans for Little Nightmares III and moving to new IPs.

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Little Nightmares II Developer Isn't Working on Sequel

Though any major sales milestone for indie puzzle-platformer game Little Nightmares II is yet to be revealed, developer Tarsier Studios and publisher Bandai Namco Entertainment are getting praised by critics and fans for 2021 sequel.

During third quarter earnings call today, parent company Embracer Group reveals that Swedish studio Tarsier will be moving on to create brand-new IPs, strongly suggesting at no possibility of Little Nightmares III arriving anytime soon.


In a recent webcast, Embracer CEO Lars Wingefors congratulated Tarsier on acclaimed success of Little Nightmares 2. Even though dev team originally created its IP, it's currently owned and published by Bandai Namco Entertainment.

Due to Little Nightmares franchise belonging to an external publisher, Tarsier won't have much of a commercial impact other than some royalty revenue only if it does very well but Wingefors is excited for their achievement regardless.


Lars Wingefors talked about future plans regarding Tarsier Studios at Embracer Group earnings report lately.

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.


Tarsier Studios will be focusing on new IPs going forward, which is one of the driving factor for their acquisition by Embracer Group. Sweden-based indie studio was acquired by Embracer last year alongside 4A Games, Gearbox and more.

Before their rise to fame with 2017 critically-acclaimed horror adventure, Tarsier briefly worked on LittleBigPlanet series. Embracer is really interested in their capability of exploring fresh ideas outside of small-scale horror adventure titles.


Tarsier Studios has announced Little Nightmares II before being acquired by Embracer back in December 2019. Besides, LN2 next-gen version for PlayStation 5 and Xbox Series X/S consoles are yet to come out later sometime this year.

Neither of Embracer and Wingefors commented on whether Tarsier will make Little Nightmares III in future. Given its fan-following, Bandai Namco can hire a new studio to develop a sequel or let Tarsier work on its intellectual properties.

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