Tarsier Studios
Swedish video game developer best known for the first two Little Nightmares games and its work on LittleBigPlanet.
Last updated August 24, 2026
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Overview
Tarsier Studios is a Swedish video game development studio headquartered in Malmö. Founded in 2004 by a group of nine developers, the company began as an independent team in Karlshamn and initially pursued original game concepts alongside work-for-hire assignments. Its early prototype, Tio, won a game-design competition and was subsequently reworked into The City of Metronome, an ambitious project that attracted attention at E3 but did not secure a publishing agreement. The studio established a long-term relationship with Sony after developing a remake of Rag Doll Kung Fu and subsequently contributing art assets and downloadable content to the LittleBigPlanet series. In 2010, Tarsier entered an exclusivity arrangement with Sony. The partnership led to Tarsier becoming the developer of LittleBigPlanet PS Vita, released in 2012, while the studio continued to expand its team and moved its main development operation from Karlshamn to Malmö. Tarsier's most prominent original franchise is Little Nightmares. The project began under the working title Hunger and was initially presented to Sony. After Sony declined to publish it, Tarsier partnered with Bandai Namco Entertainment, which announced an investment and publishing relationship in 2016. Renamed Little Nightmares, the game launched in 2017 and was followed by Little Nightmares II in 2021. These titles established the studio's reputation for atmospheric, surreal puzzle-platform games with horror elements. The intellectual property remained with Bandai Namco after Tarsier's later acquisition. Alongside its work for Sony and Bandai Namco, Tarsier developed Statik, a virtual-reality puzzle game for PlayStation VR, and The Stretchers for Nintendo. In December 2019, the studio was acquired by Goodbye Kansas Game Invest, later known as Amplifier Game Invest, an investment company owned by Embracer Group. The transaction included Tarsier's employees and intellectual property but excluded Little Nightmares and The Stretchers, whose rights remained with their respective owners. Following the acquisition, the studio added operational and people-management roles, including Oliver Merlöv as chief operating officer and Erik Rudelius as chief people and culture officer. Tarsier continues to operate as part of the Embracer Group structure, although detailed current leadership and project information is not established by the supplied reference material.
History
Tarsier Studios was established in 2004 by nine developers, among them Andreas Johnsson and Björn Sunesson. Several of the founders had encountered one another through game-development education in Karlshamn. Their early puzzle-platform concept, Tio, won a game-design competition judged by experienced industry figures. The prize placed the team in an incubation program that supplied office space and development support, although it did not provide direct financing. In 2005, the team presented a revised version of Tio, renamed The City of Metronome, at E3. The project generated interest from publishers and from Sony Computer Entertainment, but no publishing agreement resulted. Tarsier therefore supplemented its original development ambitions with work-for-hire projects. In 2006, Mattias Nygren joined as chief executive officer, while the business foundation associated with Sparbanken i Karlshamn acquired a significant stake in the company. A breakthrough came when Sony hired Tarsier to create a remake of Rag Doll Kung Fu. The assignment developed into a broader relationship: Tarsier produced art assets and downloadable content for LittleBigPlanet, eventually becoming closely associated with Sony's platform development work. In July 2010, the studio signed an exclusivity agreement with Sony. Its workforce expanded to approximately 30 people, and Tarsier moved its main operation from Karlshamn to Malmö. The former Karlshamn location was retained for outsourcing work, while Malmö became the center for console-game development. One large project under development for Sony was put on hold when Tarsier received the opportunity to make LittleBigPlanet PS Vita. The title became the studio's next major project and was released in 2012. In 2013, Nygren bought the Karlshamn operation and left Tarsier; he later established another company, The Station, there. Ola Holmdahl became chief executive of the approximately 40-person Malmö studio. Tarsier then developed Hunger, a dark and atmospheric puzzle-platform game. Sony declined the project after indicating that its ambitions for externally developed projects were considerably larger. Tarsier subsequently reached an agreement with Bandai Namco Entertainment. Announced in 2016, the arrangement included investment in the project and the intention to support multiple games. Hunger was renamed Little Nightmares, released in 2017, and followed by Little Nightmares II in 2021. The series became the studio's defining original work and was noted for its surreal settings, environmental puzzles, restrained storytelling, and horror themes. The studio also created Statik, a virtual-reality puzzle game for PlayStation VR, and worked with Nintendo on The Stretchers. In December 2019, Goodbye Kansas Game Invest acquired Tarsier for 99 million Swedish kronor, comprising 88 million kronor in cash and 11 million kronor in newly issued Class B shares. Goodbye Kansas Game Invest was subsequently known as Amplifier Game Invest and had been acquired by Embracer Group. The deal covered Tarsier's 65 employees and intellectual property, but not Little Nightmares or The Stretchers, which remained controlled by their respective owners. In the post-acquisition period, Tarsier recruited Oliver Merlöv as chief operating officer and Erik Rudelius as chief people and culture officer. The supplied reference states that three of the nine original founders remained with the company as of 2022.
- 2021
Little Nightmares II is released
[1]The sequel expands Tarsier's atmospheric horror puzzle-platform formula.
- 2019
Tarsier is acquired by Goodbye Kansas Game Invest
[1]The studio is acquired in a transaction involving its employees and intellectual property, excluding externally owned franchises.
- 2016
Hunger becomes Little Nightmares
[1]Bandai Namco announces its publishing and investment relationship with Tarsier around the renamed project.
- 2013
The main studio moves to Malmö
[1]Ola Holmdahl becomes CEO after Mattias Nygren leaves and takes over the Karlshamn operation.
- 2012
LittleBigPlanet PS Vita is released
[1]Tarsier delivers a major LittleBigPlanet title for Sony's PlayStation Vita.
- 2010
Sony exclusivity agreement
[1]Tarsier signs an exclusivity arrangement with Sony after years of collaboration on PlayStation-related projects.
- 2006
Mattias Nygren becomes chief executive
[1]Nygren joins Tarsier as CEO while the Sparbanken i Karlshamn foundation takes a significant stake.
- 2005
The City of Metronome is presented at E3
[1]The reworked Tio concept is pitched to publishers, attracting interest but no resulting publishing deal.
- 2004
Tarsier Studios is founded
[1]Nine developers establish the studio in Karlshamn, Sweden.
Products and positioning
An independent-origin game development studio focused on atmospheric, stylized, puzzle-driven experiences for console, PC, and virtual-reality platforms.
Cancelled video game
The City of Metronome
An original puzzle-platform concept that evolved from Tio, the prototype that helped Tarsier enter an incubation program. The project was shown to publishers at E3 2005 and attracted industry interest, including from Sony Computer Entertainment, but Tarsier did not secure a publishing agreement and the game was ultimately cancelled.
Platform game · 2012
LittleBigPlanet PS Vita
A PlayStation Vita entry in Sony's user-created platform-game series. Its development became a major turning point for Tarsier, replacing a separate Sony project that had been placed on hold and demonstrating the studio's ability to work within an established platform franchise.
Horror puzzle-platform game · 2017
Little Nightmares
Originally developed under the title Hunger, Little Nightmares is a stylized horror puzzle-platform game created by Tarsier and published by Bandai Namco Entertainment. It uses environmental exploration, stealth, physical puzzles, and sparse visual storytelling to portray a threatening surreal world.
Horror puzzle-platform game · 2021
Little Nightmares II
The follow-up to Little Nightmares continues Tarsier's combination of cinematic presentation, environmental puzzles, unsettling character design, and minimal dialogue. It reinforced the studio's identity as a creator of atmospheric horror adventures.
Virtual-reality puzzle game
Statik
A virtual-reality puzzle game created for PlayStation VR. The game reflects Tarsier's interest in tactile interaction and experimental puzzle design outside its larger console collaborations.
Cooperative puzzle game
The Stretchers
A game developed by Tarsier in collaboration with Nintendo. It broadened the studio's portfolio beyond the darker tone associated with Little Nightmares and demonstrated its work on Nintendo hardware.
Brand decisions
2019
Sell Tarsier Studios to Goodbye Kansas Game InvestM&ABackground
Tarsier sought a new ownership structure after developing a portfolio of contracted and original projects.
Action taken
Goodbye Kansas Game Invest acquired the studio, its 65 employees, and its intellectual property. Little Nightmares and The Stretchers were excluded from the transaction.
Aftermath
The buyer later became known as Amplifier Game Invest within Embracer Group, and Tarsier added senior operations and people-management positions.
Acquisition consideration. 99 million SEK total, comprising 88 million SEK in cash and 11 million SEK in newly issued Class B shares (December 2019)
2016
Partner with Bandai Namco for HungerStrategyBackground
Sony declined to publish Tarsier's original horror project after seeking higher ambitions for external projects.
Action taken
Tarsier partnered with Bandai Namco Entertainment, renamed Hunger as Little Nightmares, and developed the project with the publisher's investment and support.
Aftermath
Little Nightmares became Tarsier's best-known original franchise and received a sequel.
2010
Enter an exclusivity arrangement with SonyStrategyBackground
After producing work connected with PlayStation projects and the LittleBigPlanet series, Tarsier pursued a closer relationship with Sony.
Action taken
The studio signed an exclusivity deal with Sony in July 2010.
Aftermath
The arrangement preceded Tarsier's work on LittleBigPlanet PS Vita and supported the expansion of its Malmö-based console development operation.
Recent events
Bandai Namco announces Little Nightmares II launch dates[3]
Reported:
Bandai Namco and developer Tarsier Studios announced that Little Nightmares II was scheduled to launch on February 11, 2021, for PlayStation 4, Xbox One, Nintendo Switch, and PC via Steam, with Xbox Series X and PlayStation 5 versions planned later in 2021.
- Unconfirmed
Embracer Group acquires Tarsier Studios[4]
Reported:
Embracer Group acquired Tarsier Studios for $10.5 million. All 65 Tarsier staff will transfer to Embracer, and the studio will reportedly remain autonomous.
Sources5 sources
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