Summary
- 11 Bit Studios has canceled Project 8, an unannounced narrative-driven console game, due to a shift in market trends.
- An undisclosed number of talents that were involved in the title will be dismissed as a result of its cancelation.
- The studio is currently working on The Alters, which is now aiming for an early 2025 release.
Warsaw-based developer 11 Bit Studios, the company behind the acclaimed city builder series Frostpunk, will lay off employees after it canceled an unannounced console game due to shifting market trends and concerns over the title’s profitability. 11 Bit Studios is currently working on a sci-fi survival game called The Alters.
It has been a rocky year for 11 Bit Studios. The value of the developer’s shares on the Polish mWIG40 index has steadily dropped following the launch of Frostpunk 2 in September. Despite selling more than 350,000 copies in its first week, the latest entry in the popular city-building series failed to meet expectations, perhaps partly due to relatively low ratings, financial analysts were cited as saying in a Reuters report. 11 Bit Studios also postponed the release of The Alters from November to early 2025 in an effort to improve the game and boost its marketing. Even more concerning news regarding the developer has arrived as the year comes to an end.
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In a recently published investor relations report, 11 Bit Studios revealed that it has scrapped Project 8, an unannounced game that was intended to be the company’s first title designed specifically for console gamers. 11 Bit Studios CEO and Management Board President Przemek Marszal explained that this title was drawn up in an era when narrative-driven and story-rich games were more appealing to audiences. He noted that this change, alongside budget increases that would have been required to deal with development issues, raised doubts about Project 8‘s profitability. Ultimately, the Management Board lost confidence in the game being completed at a satisfactory level of quality within a reasonable timeframe, Marszal said.
11 Bit Studios Cancels Console-Focused Game Project 8
Project 8, which began development in 2018 and had 37 team members as of September 30, is estimated to reflect as a PLN 48.4 million ($11.8 million) loss for 11 Bit Studios. An undisclosed number of talents that were involved in the title will be dismissed as a result of its cancelation. These staff members will receive severance packages, as well as offers for psychological counseling and assistance in finding new employment, Marszal assured. Meanwhile, more than half of the current Project 8 team will be provided with opportunities to move over to existing teams or to new ones for yet-to-be-announced initiatives, the executive added.
Nearly 15,000 workers in the video game industry have been affected by dismissals in 2024, according to a tally maintained by journalist Mike Straw. CBC Radio Canada recently reported that Gotham Knights developer WB Games Montreal laid off 99 employees.
According to Marszal, the assets developed for Project 8 may end up being repurposed for other applications. He assured that his company will continue to work on several key projects, including Frostpunk 2, which was crowned Best Sim/Strategy Game at The Game Awards 2024. A roadmap for the title that 11 Bit Studios revealed in November confirmed a 2025 console launch and several expansions.
11 Bit Studios
- Date Founded
- December 11, 2009
- Headquarters
- Warsaw, Poland
- Parent Company
- CD Projekt
- Known For
- Frostpunk