Their strategy game won an award at the GOTY 2024 gala, but now there’s a surprise cancellation at the studio behind Frostpunk 2. Project 8, designed exclusively for consoles, will not see the light of day, and 11 Bit Studios will lay off an undetermined number of workers.

We all assumed that things were going well at 11 Bit Studios, especially after their success with Frostpunk 2, which recently won Best Strategy and Simulation Game at The Game Awards 2024. However, the studio has now shared unfortunate news: Project 8 has been canceled, and as a result, some employees will face layoffs.

The studio announced this decision through a statement on its official website: “Our vision for Project 8, which was meant to be our first console-exclusive title, was ambitious and exciting. However, it was developed under very different market conditions when narrative-driven, story-rich games were more appealing,” explained Przemysław Marszał, Chairman of the Board of Directors at 11 Bit Studios. Project 8 entered development in 2018 with a team of 37 developers, and its total budget reached 48.4 million zloty, which equates to over 11 million euros.

The statement continued: “With Project 8, we experienced both significant progress and substantial setbacks. Stabilizing the development team during the COVID-19 pandemic was particularly challenging, but we kept moving forward. Although we achieved remarkable quality improvements in some areas, many critical aspects of the game and its development process remained problematic despite several iterations. Over time, delays piled up, and with every milestone, the project budget increased.”

Marszał elaborated further: “When assessing a project, the Board of Directors always considers development progress, internal and external analyses, market trends, and sales or marketing potential. Unfortunately, in this case, our findings revealed unresolved issues that would have required extending the production schedule and increasing the budget further.” As a result, the leadership at 11 Bit Studios lost confidence in the project’s ability to succeed.

The cancellation of Project 8 also means that layoffs are inevitable. According to Marszał, more than half of the Project 8 development team will be reassigned to other projects at 11 Bit Studios, but some employees will be let go. “We will provide psychological support and assistance with job placement for those who need it,” the statement assured.

Despite these setbacks, 11 Bit Studios remains optimistic about the future. With Project 8 no longer in the pipeline, the team is focusing on announced projects. “11 Bit Studios will continue to work on several key projects, including Frostpunk 2, which recently became the first title in our history to win a prestigious award at The Game Awards. Additionally, the team is preparing for the release of The Alters, another highly anticipated project. And that’s not all—we have a clear roadmap for the future and have already taken concrete steps to move forward. Several promising initiatives, which are strategically significant from a business perspective, will help fill the gap left by Project 8,” Marszał concluded.

Source: 3DJuegos