11 Bit Studios cuts staff after canceling console-focused 'Project 8' game11 Bit Studios cuts staff after canceling console-focused 'Project 8' game

Frostpunk 2 developer 11 Bit Studios is making layoffs after scrapping an unannounced title codenamed 'Project 8.' Company president Przemysław Marszał said the project was discontinued due to shifting market conditions.

According to Marszał, work on Project 8 began in 2018 when "narrative-driven, story-rich games held stronger appeal." 11 Bit had spent 48.4 million PLN ($11.8 million) on the project as of September 2024. At that point, 37 team members were attached to the title.

Marszal said half of the Project 8 workforce will be given the chance to transition to existing teams or as-yet-unannounced initiatives. One of those "highly promising" teams is working on the 2025 survival game The Alters.

"We have a clear and well-defined roadmap for the future and have already taken concrete steps to move forward. Some of these initiatives, which are highly promising from a business perspective, will help fill the gap left by Project 8. We look forward to sharing more details soon," Marszał added.

Despite putting Project 8 to bed, Marszał indicated assets from the derelict title could be used elsewhere.

Elaborating as to why it was cancelled, Marszal explained the project experienced "breakthroughs and setbacks" but noted critical aspects the game remained "problematic."

"Our findings revealed unresolved issues and challenges that would require further extensions of the production timeline and corresponding budget increases to address," he continued. "This, coupled with revised sales forecasts, largely reflecting the changing market environment, raised significant doubts about the project’s overall profitability."

As such, management reportedly "lost confidence" and ultimately opted to scrap the project. Had it been released, Project 8 would have been 11 bit's first game designed specifically for consoles. While the studio has released its games for consoles in the past, those versions have typically come a year or later after their initial launches on PC. Frostpunk 2, for example, is coming to PlayStation 5 and Xbox Series X|S sometime in 2025 after its PC release back in September.

In October, it was revealed 11 Bit quietly eliminated eight roles toward the end of 2023. Those developers were working on an unnamed project the studio said underwent "production changes," which resulted in employees being laid off or reshuffled into other teams.