Summary
Warsaw-based developer11 Bit Studios, the company behind the acclaimed city builder seriesFrostpunk, will lay off employees after it canceled an unannounced console game due to shifting market trends and concerns over the title’s profitability.11 Bit Studiosis currently working on a sci-fi survival game calledThe Alters.
It has been a rocky year for 11 Bit Studios. The value of the developer’s shares on the Polish mWIG40 index has steadily dropped following the launch ofFrostpunk 2in September. Despite selling more than 350,000 copies in its first week, the latest entry in the popular city-building series failed to meet expectations, perhaps partly due to relatively low ratings, financial analysts were cited as saying in aReuters report. 11 Bit Studios alsopostponed the release ofThe Altersfrom November to early 2025 in an effort to improve the game and boost its marketing. Even more concerning news regarding the developer has arrived as the year comes to an end.
In a recently publishedinvestor relations report, 11 Bit Studios revealed that it has scrappedProject 8, an unannounced game that was intended to be the company’s first title designed specifically for console gamers. 11 Bit Studios CEO and Management Board President Przemek Marszal explained that this title was drawn up in an era whennarrative-driven and story-rich gameswere more appealing to audiences. He noted that this change, alongside budget increases that would have been required to deal with development issues, raised doubts aboutProject 8’s profitability. Ultimately, the Management Board lost confidence in the game being completed at a satisfactory level of quality within a reasonable timeframe, Marszal said.
11 Bit Studios Cancels Console-Focused Game Project 8
Project 8, which began development in 2018 and had 37 team members as of September 30, is estimated to reflect as a PLN 48.4 million ($11.8 million) loss for 11 Bit Studios. An undisclosed number of talents that were involved in the title will be dismissed as a result of its cancelation. These staff members will receive severance packages, as well as offers for psychological counseling and assistance in finding new employment, Marszal assured. Meanwhile, more than half of the currentProject 8team will be provided with opportunities to move over to existing teams or to new ones for yet-to-be-announced initiatives, the executive added.
Nearly 15,000 workers in the video game industry have been affected by dismissals in 2024, according to atallymaintained by journalist Mike Straw.CBC Radio Canadarecently reported thatGotham KnightsdeveloperWB Games Montreal laid off 99 employees.
According to Marszal, the assets developed forProject 8may end up being repurposed for other applications. He assured that his company will continue to work on several key projects, includingFrostpunk 2, which was crownedBest Sim/Strategy Game at The Game Awards 2024. A roadmap for the title that11 Bit Studiosrevealed in November confirmed a 2025 console launch and several expansions.
