11 Bit Studios Announces Layoffs and Cancellation of Console Game Project 8

Developer of Frostpunk, 11 Bit Studios, has made the decision to cancel its console-focused title, Project 8, which has been in development since 2018. This move has resulted in a number of staff members being let go. By September 2024, a team of 37 had been working on the project, with estimated development costs reaching PLN 48.4 million ($11.8 million). However, following a recent review, the studio's management board chose to terminate the project. According to studio president Przemysław Marszał, more than half of the Project 8 team will be offered roles on other projects within the company. Those affected by the layoffs will receive support, including severance packages and assistance with finding new employment. The studio is currently exploring ways to utilize or adapt the assets developed for Project 8 in other projects. Marszał stated that the vision for Project 8 was ambitious, but it was conceived during a different market landscape when narrative-driven games were more in demand. The project faced various setbacks, particularly during the COVID-19 pandemic, leading to delays and increased costs. The most recent evaluation of the project revealed unresolved issues, leading to doubts about its profitability due to changing market conditions and revised sales forecasts. As a result, the management board lost confidence in the project's ability to be completed on time and to a satisfactory quality, resulting in its cancellation. Project 8 was one of seven projects 11 Bit committed to in 2020, with investments totaling over $21 million. The studio also announced a delay in another upcoming game, The Alters, in October.