Frostpunk creators cancel “Project 8” and lay off staff amid concerns that “narrative-driven, story-rich games” don’t sell

The cancellation of a new console-oriented game by Frostpunk developers 11 bit studios has been announced due to shifting market trends and specific development challenges. This decision will result in job losses for some 11 bit staff, although opportunities for transitioning to other projects are being offered to at least half of the affected team members, including undisclosed initiatives.

The cancelled project, internally known as Project 8, had a team of 37 members as of September 2024, out of the 150+ total staff at 11 bit studios. It started development in early 2018 and incurred development costs of approximately 48.4 million zloties by September 2024.

11 bit’s president, Przemysław Marszał, expressed disappointment in the cancellation, citing changing market conditions that now favor different types of games. Despite the setbacks faced during the game’s development, progress was made until various issues led to delays and budget increases.

Concerns about profitability and unresolved challenges prompted the decision to cancel the project, with a phased reduction in staff planned. Marszał mentioned that over half of the Project 8 team will have opportunities to join other teams or new initiatives within the company.

While the cancellation is unfortunate, 11 bit studios have other projects in the pipeline, including the upcoming game “The Alters,” a sci-fi adventure with a unique gameplay concept. The studio has also been involved in publishing third-party titles like Indika and Moonlighter.

Despite the disappointment of the cancelled project, the industry continues to evolve, and the team at 11 bit remains dedicated to delivering engaging experiences to players. The impact of the cancellation on the affected staff is acknowledged, and efforts are being made to support their transition to new opportunities within the company.