Frostpunk dev 11 Bit cancels project as it was conceived when “story-rich games held stronger appeal”

Frostpunk developer 11 Bit Studios has laid off an unknown number of employees following the cancellation of its console game, codenamed Project 8.

Project 8 started in 2018 and had at least 37 people working on it by the end of September 2024. During this time, the studio invested “over” 48.4 million zlotys into the game, which is equivalent to approximately £9.4 million or US$11.8 million. .

However, the studio stated that statement that while it achieved “noticeable improvements in quality in certain areas”, “several critical aspects of the game and its development process remained problematic despite several iterations.” This caused delays, and “with each stage” the project budget grew.

The decision to shut it down finally came after 11 Bit reviewed the progress of Project 8 and found “unresolved issues and issues that would require further extensions to the production schedule and a corresponding increase in the budget. This, coupled with revised sales forecasts, largely reflects changing market conditions that have cast serious doubt on the overall profitability of the project.”

This meant that management lost confidence in the project and its “level of quality”, leading to closure.

“Our vision for Project 8, which would be our first game designed specifically for console gamers, was bold and exciting,” said Przemyslaw Marsha, President of the Board of 11 Bit Studios. “However, it was conceived in a completely different market environment, when story-driven and story-heavy games were more popular.

“With Project 8, we experienced both breakthroughs and failures. During the COVID-19 pandemic, stabilizing the development team proved particularly difficult, but progress continued. While we have made noticeable quality improvements in certain areas, some important aspects of the game and its development have remained problematic despite numerous iterations. Over time, delays accumulated, and with each stage the project budget grew.”

While “more than half” of Project 8’s current team has been reassigned to other internal projects, Project 8’s closure will result in “reductions in personnel involved in its development” and those affected will receive unspecified severance packages and “psychological counseling and help finding new job.”

The studio said it remains committed to “several key projects,” including Frostpunk 2 and Alters.

The number of game developers affected by job losses in 2024 alone is now around 14,600 people.