Summary
- 11 Bit Studios has canceled Project 8, an unannounced narrative-driven console game, due to a change in market trends.
- An undisclosed number of talent who were involved in the title will be fired as a result of its cancellation.
- The studio is currently working on The Alters, which is now targeting an early 2025 release.
Developer from Warsaw 11 Bit Studiosthe company behind the famous City Builder series Frostpunkwill lay off employees after canceling an unannounced console game due to changing market trends and concerns about the title's profitability. 11 Bit Studios is currently working on a sci-fi survival game called The Alters.
It's been a difficult year for 11 Bit Studios. The value of the developer's shares on the Polish mWIG40 index has steadily declined since the launch Frostpunk 2 in September. Despite selling more than 350,000 copies in its first week, the latest entry in the popular city-building series fell short of expectations, likely due to relatively low ratings, financial analysts said in a Reuters report. 11 Bit Studios also delayed its release The Alters from November to early 2025 in an effort to improve the game and boost its marketing. Even more worrying news regarding the developer has arrived as the year draws to a close.

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In a recent investor relations report, 11 Bit Studios revealed that it has been scrapped Project 8an unannounced game that was to be the company's first title designed specifically for console gamers. 11 Bit Studios CEO and Chairman of the Board Przemek Marszal explained that this title was created in an era when narrative-driven and story-rich games were more appealing to audiences. He noted that this change, along with budget increases that would have been necessary to deal with development problems, raised doubts about Project 8its profitability. Ultimately, the Board lost confidence in completing the game to a satisfactory level of quality in a reasonable amount of time, Marszal said.
11 Bit Studios Cancels Console-Focused Game Project 8
Project 8which began development in 2018 and had 37 team members as of September 30, is expected to reflect a loss of PLN 48.4 million ($11.8 million) for 11 Bit Studios. An undisclosed number of talent who were involved in the title will be fired as a result of its cancellation. These staff members will receive severance packages as well as offers of psychological counseling and assistance in finding a new job, Marszal assured. Meanwhile, more than half of the current Project 8 the team will have opportunities to transition 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 were affected by layoffs in 2024, according to a count maintained by journalist Mike Straw. CBC Radio Canada recently reported that Knights of Gotham Developer WB Games Montreal has laid off 99 employees.
According to Marszal, the assets developed for Project 8 it may end up being reused for other applications. He assured that his company will continue to work on several key projects, including Frostpunk 2which was crowned Best Simulation/Strategy Game at The Game Awards 2024. A roadmap for the title that 11 Bit Studios revealed in November confirmed a 2025 console release and several expansions.

11 Bit Studios
- Date of establishment
- December 11, 2009
- OFFICE
- Warsaw, Poland
- The parent company
- Project CD
- Known for
- Frostpunk