A Heartbreaking End for ‘Project 8’
In a devastating turn of events, 11 Bit Studios, the developer behind Frostpunk 2, has announced massive layoffs following the cancellation of its highly anticipated, but ultimately doomed, unannounced title codenamed ‘Project 8’. Company president Przemysław Marszał revealed that the game, which began development in 2018, was scrapped due to the shifting tides of the gaming market, leaving the studio reeling and its staff facing an uncertain future.
A Costly Gamble That Failed to Pay Off
Project 8 was conceived during a time when narrative-driven, story-rich games were in high demand. By September 2024, the studio had already invested a staggering 48.4 million PLN ($11.8 million) into the project, with 37 team members dedicated to its development. Despite this considerable investment, the game’s prospects began to falter as market conditions shifted—and 11 Bit ultimately made the difficult decision to abandon it.
Mass Layoffs: A Dark Aftermath
The impact on the team was swift and harsh. Half of the 37-person team behind Project 8 will be given a chance to transition into existing teams or join other unannounced initiatives, with one of the “promising” teams working on the highly anticipated **2025 survival game, The Alters.” But for many, these transitions may feel like a hollow consolation as their hard work on Project 8 comes to an abrupt end.
Marszał reassured investors that the company has a “clear and well-defined roadmap” moving forward, citing “highly promising” initiatives that would help fill the void left by Project 8. However, the loss of this game is a blow to the studio’s momentum, with the cancellation sending shockwaves through the development community.
The Struggles Behind Project 8’s Demise
In an emotional reflection on the project’s downfall, Marszał explained that while Project 8 had its “breakthroughs and setbacks,” the game faced “critical issues” that were impossible to overcome. The project was plagued by unresolved problems that would have required extensive budget increases and timeline extensions. With revised sales forecasts reflecting a dramatic shift in the market, 11 Bit Studios ultimately lost faith in the project’s profitability.
Marszał stated that these factors led to the management’s decision to scrap Project 8 entirely. The cancelled title would have marked a significant milestone for 11 Bit, as it was intended to be the studio’s first game designed specifically for consoles. Although 11 Bit had previously released console versions of its games, they typically came much later than the PC releases—Frostpunk 2 being a prime example, launching on PC in September 2024 and slated for consoles in 2025.
Recent Layoffs: A Troubling Pattern
The scrapping of Project 8 follows another troubling sign of financial strain. In October 2023, 11 Bit quietly eliminated eight roles from a separate unnamed project, which underwent “production changes.” These changes ultimately resulted in further layoffs or staff reshuffling within the company, raising more questions about the studio’s stability and future plans.
What’s Next for 11 Bit Studios?
While the cancellation of Project 8 represents a major setback, 11 Bit Studios remains hopeful for the future. With The Alters and other projects on the horizon, the studio is focused on recovering and moving forward, but the loss of Project 8 casts a long shadow over their immediate prospects. The gaming community will be watching closely to see if the studio can regain its footing and deliver the next big hit—or if the turbulence will continue.
Key Points:
- Project 8, an unannounced title by 11 Bit Studios, was canceled after a costly development period and shifting market conditions.
- 11 Bit Studios spent 48.4 million PLN ($11.8 million) on the project, which had 37 team members working on it by September 2024.
- Half of the team will be transitioned to other existing teams or unannounced initiatives, with one project being The Alters, a survival game set for 2025.
- The project’s cancellation was due to critical issues that would have required more money and time to address, combined with revised sales forecasts and doubts about profitability.
- The game would have been 11 Bit’s first title designed specifically for consoles, but the studio’s console releases typically follow the PC versions by a year.
- The company also quietly laid off eight roles in late 2023 due to “production changes” on another unnamed project.