Tarsier Studios, the team behind the Little Nightmares franchise, has revealed that they're moving on. The brand is owned by Bandai Namco, so there could certainly be another installment down the line, but Tarsier Studios won't be involved. The company is moving on to something else altogether. You can see their full statement on the matter below.
“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.”