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

Frostpunk 2 developer 11 bit Studios is laying off staff after it pulled the plug on the unannounced game, Project 8. The studio elected to "discontinue its development" after it was started years ago under "very different market conditions," said president Przemysław Marszał.

According to him, Project 8's development started back in 2018, when "narrative-driven, story-rich games held stronger appeal." As of this past September, its total production costs came to 48.4 million PLN (or $11.8 million).

While specific team numbers were not provided, he added that half the current Project 8 team would be offered roles on other existing 11 Bit teams or "new, as-yet-unannounced initiatives...that will help fill the gap left by Project 8." One of those "highly promising" teams is working on the 2025 survival game The Alters.

Despite putting Project 8 game to bed, Marszał indicated assets from the would-be game could be used elsewhere for other projects.

Why cancel it? He explained the project had "breakthroughs and setbacks," including growing delays and several critical parts of its development that were said to be "problematic." The tipping point came with Project 8's most recent milestone, whose evaluation showed "unresolved issues...that would require further extensions of the production timeline and corresponding budget increases to address."

As such, management reportedly "lost confidence" and ultimately opted to end the project. Had it been released, Project 8 would have been 11 bit's first game designed specifically for the console audience. 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.

This past 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 staff being let go or switching to other teams, similar to what's happening with Project 8's staff.