Frostpunk developer 11 Bit Studios announces layoffs as it cancels unannounced project

by Danny Craig · 12/20/24, 3:25 PM
Frostpunk developer 11 Bit Studios announces layoffs as it cancels unannounced project
11 bit studios

11 Bit Studios, the developer behind Frostpunk, has announced the cancellation of the unannounced console title "Project 8," which will result in layoffs for an undisclosed number of employees.

The details:

  • The studio announced on its website that Project 8 began development in 2018, with 37 employees actively working on the unnamed title as of September 2024 and development costs of PLN 48.4 million ($11.8 million USD).

  • However, the project has now been scrapped after a recent review highlighted "unresolved issues and challenges that would require further extensions of the production timeline and corresponding budget increases to address. This, coupled with revised sales forecasts, largely reflecting the changing market environment, raised significant doubts about the project’s overall profitability.”

  • The developer went on to say that the project was created "under very different market conditions, when narrative-driven, story-rich games held stronger appeal." This, combined with various issues resulting in internal delays and budget increases, caused the studio's management to lose faith in its ability to deliver a high-quality game on time.

  • With the cancellation, the studio has announced that it will lay off employees involved in the project. However, studio president Przemysław Marszał stated that "more than half" of the development team will be moved to other projects within the company. Meanwhile, those let go will receive severance packages, as well as "psychological counselling and assistance in finding new employment."

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