11 bit studios, the Warsaw-based developer behind the award-winning Frostpunk 2, has officially canceled a project codenamed Project 8, a move that comes after six years of development and approximately $11.9 million in expenses. The cancellation has also resulted in layoffs, marking a challenging moment for the studio, which has earned acclaim for its narrative-rich and strategy-driven games.
In a public statement, Przemysław Marszał, President of 11 bit studios, explained the reasoning behind the decision. “Our vision for Project 8 was bold and exciting,” Marszał said. “However, it was conceived under very different market conditions, when narrative-driven, story-rich games held stronger appeal.”
The project, which began in early 2018, was initially envisioned as 11 bit studios’ first console-focused title. However, the unforeseen challenges of the COVID-19 pandemic disrupted development, causing delays and inflating the budget. By September 2023, the total cost of Project 8 had exceeded PLN 48.4 million ($11.9 million). Despite iterative improvements, Marszał admitted that “several critical aspects of the game and its development process remained problematic.”
Extensive internal reviews, independent surveys, and market analyses ultimately raised concerns about the project’s profitability, leading the management board to pull the plug. “With each milestone, the project’s budget grew, and doubts about its overall viability became unavoidable,” Marszał explained.
The cancellation has also resulted in layoffs. While over half of the 37-person team assigned to Project 8 were offered opportunities to transition to other ongoing or unannounced projects, the fate of the remaining staff has not been disclosed.
Despite the setback, 11 bit studios remains active with other projects, including The Alters, a sci-fi survival adventure slated for release in early 2025 on PC, PlayStation 5, and Xbox Series X|S. Featuring over 10,000 lines of fully voice-acted dialogue, the game tells the story of a man stranded on a remote planet, grappling with survival and existential questions.
This challenging moment underscores the volatility of the gaming industry, where even established studios face significant risks. Fans and industry insiders will now be watching to see how 11 bit studios rebounds from this decision and what lies ahead for their next ventures.
