Frostpunk Developer 11 Bit Studios Cancels Console Game, Lays Off Staff

It’s been reported today that 11 bit studios have canceled the development of their console-centric game, which was codenamed Project 8. The development of this title first started in 2018, and approximately 37 people were working on it by September 2024. With this game being canceled, there have been a number of layoffs, which are yet to be determined. It’s been estimated that 11 Bit Studios has spent PLN 48.4 million ($11.8 million) on the development of this project up until now. The information was released on the 11 bit studios website, where they talked about the reason behind the project’s cancellation.

“Our vision for Project 8, which was intended to be our first title designed specifically for console gamers, was bold and exciting. However, it was conceived under very different market conditions, when narrative-driven, story-rick games held stronger appeal,” says Przemysław Marszał, President of the Management Board at 11 bit studios. It has been stated that the shifting market trends were not the only reason behind Project 8’s cancellation. The game was being developed during a very rocky period, as the game had to continue development through a global pandemic.

“With Project 8, we experienced both breakthroughs and setbacks. During the COVID-19 pandemic, stabilizing the development team proved particularly difficult, yet progress continued. While we achieved noticeable quality improvements in certain areas, several critical aspects of the game and its development process remained problematic despite multiple iterations. Over time, delays accumulated, and with each milestone, the project’s budget grew,” explains Marszał.

It has been confirmed that there will be a reduction in staff of those who were involved in the development of Project 8. However, Marszał has confirmed that the employees affected by layoffs will receive severance packages, as well as assistance in finding new work and psychological counseling for those who need it.

From the report, it seems that they are hoping that the layoffs will be minimal, as Marszał says that more than half of the current team who were working on Project 8 will be offered opportunities within the company, allowing them to transition to existing teams or to begin on new, unannounced projects.

“Looking ahead, 11-bit studios is continuing intensive work on several key projects, including Frostpunk 2, which recently became the Company’s first title to win the industry’s prestigious The Game Awards. The team is also gearing up for the launch of The Alters, another highly anticipated release.”

At the moment, there isn’t much information about The Alters other than that it’s a sci-fi game with base-building elements. The game is set to release in Q1 2025, but with this announcement, it’s uncertain whether they will be able to keep to that time frame.