French RPG developer Midgar Studio is shutting down following a court-ordered liquidation. As the financial woes of its parent company, Nacon, spread to its subsidiaries, this marks the second studio closure following Spiders. The future of the upcoming title 'Edge of Memories,' slated for release this year, has also become uncertain.

Midgar Studio founder Jérémy Zeler-Maury announced the closure on LinkedIn on the 20th, stating, 'Today, Midgar Studio comes to an end.' A French court ordered the studio's liquidation after attempts to find a buyer within the allotted timeframe proved unsuccessful.

Founded in Montpellier in 2008, Midgar Studio aimed to blend French and Japanese sensibilities in its games. The studio gained recognition with the 2017 open world parkour game 'Hover' and the 2021 turn-based RPG 'Edge of Eternity.' It was acquired by Nacon in 2022 and had been focusing on the development of the action RPG 'Edge of Memories' for the past few years. 'Edge of Eternity,' in particular, drew attention as a notable example of a French developer successfully adopting the conventions of Japanese-style turn-based RPGs.

The liquidation stems from the financial crisis at parent company Nacon. Nacon filed for insolvency in February, a situation tied to the failure of its major shareholder, the Big Ben Group, to repay debts. Since then, several studios under Nacon have undergone insolvency proceedings.

Midgar was not included in the initial insolvency filings. In fact, as recently as May, Nacon heavily promoted 'Edge of Memories' during its 'Nacon Connect' online showcase. On June 27, the studio shared its thoughts on participating in Steam Next Fest and announced an extension of the game's demo, suggesting that development was proceeding steadily.

However, despite acquisition negotiations taking place during that same period, the studio was unable to find a way to keep the team and company together, and liquidation was finalized.

Nacon previously liquidated Spiders, the developer of 'GreedFall,' in a similar manner this past April. After failing to find a buyer, the studio was ultimately dissolved. Zeler-Maury stated, "While the company is closing, the team's talent, experience, and value remain," and urged other studios, publishers, and recruiters to reach out to his team members.

The biggest concern is the fate of 'Edge of Memories,' which was scheduled for a 2026 release but remains unfinished. When Spiders was closed, Nacon retained the publishing rights to the 'GreedFall' DLC. However, given that Nacon itself lacks the funds to complete an unfinished game without a development studio, the possibility of cancellation is being raised.