11 Bit Studios Cancels Console Game “Project 8,” Announces Layoffs Amid Development Struggles
In a surprising turn of events, 11 Bit Studios, the developers behind critically acclaimed titles like Frostpunk, have officially canceled their console-focused game, codenamed Project 8. The cancellation comes after years of development, substantial financial investment, and shifting market trends, resulting in layoffs within the company.
A Bold Vision Stalled by Market Shifts and Challenges
Originally envisioned as 11 Bit Studios’ first console-specific title, Project 8 began development in 2018 and had grown to involve 37 team members by late 2024. The studio revealed that over PLN 48.4 million ($11.8 million) had been poured into the project, making its cancellation a significant loss.
“Our vision for Project 8... was bold and exciting. However, it was conceived under very different market conditions when narrative-driven, story-rich games held stronger appeal,” stated Przemysław Marszał, President of the Management Board. He further explained that the pandemic had exacerbated the project’s challenges, including team stability and budget overruns. Despite achieving some breakthroughs, critical areas of development lagged, ultimately leading to the project’s cancellation.
Staff Layoffs with Support Measures
The decision to cancel Project 8 has directly impacted the team, with layoffs confirmed. However, Marszał assured that employees would receive severance packages, assistance in job placement, and access to psychological counseling. Notably, more than half of the team will transition to other roles within 11 Bit Studios, joining projects like Frostpunk 2 or the upcoming The Alters.
Focus Shifts to Future Projects
Despite the setback, 11 Bit Studios remains committed to its ongoing titles. Frostpunk 2, which recently garnered recognition at The Game Awards, continues to progress as a key focus for the studio. Similarly, anticipation surrounds The Alters, a sci-fi game with base-building mechanics slated for Q1 2025, though this timeline could be impacted by the restructuring.
A Difficult Decision for a Resilient Studio
The cancellation of Project 8 reflects the broader challenges faced by game developers in a volatile market. While it’s disappointing for fans awaiting the studio’s first console-specific title, 11 Bit Studios' focus on its core strengths may strengthen its position moving forward.
What are your thoughts on this major decision by 11 Bit Studios? Let us know in the comments if you think the pivot toward their other projects will pay off.
