Little Nightmares 3 was developed by Supermassive Games and published by Bandai Namco Entertainment. This marks a change from the first two games, which were developed by Tarsier Studios. The shift happened because Tarsier Studios was acquired by Embracer Group and decided to move away from the franchise, while Bandai Namco retained the intellectual property and chose Supermassive Games, known for their expertise in narrative horror games, to continue the series.