Frostpunk developer 11 Bit Studios has laid off an unknown number of staff following the cancellation of its console game codenamed Project 8.
Project 8 started in 2018 and at least 37 people were working on it as of the end of September 2024. The studio has invested “more than” PLN 48.4 million in the game during that time, the equivalent of around £9 .4 million or $11.8 million. .
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However, the studio said in a statement that while it achieved “notable quality improvements in certain areas,” “several critical aspects of the game and its development process remained problematic despite multiple iterations.” This caused delays and “with each milestone” the project budget grew.
The decision to ultimately shut it down came after 11 Bit reviewed the progress of Project 8 and found “unresolved issues and challenges that would require further extensions to the production schedule and corresponding budget increases to address. This, along with revised sales forecasts , largely reflecting the changing market environment, raised significant doubts about the overall profitability of the project.”
This meant that management lost confidence in the project and its “quality level”, leading to its termination.
“Our vision for Project 8, which was intended to be our first title designed specifically for console gamers, was bold and exciting,” said Przemysálszaw Marszaé, Chairman of the Board of Directors at 11 Bit Studios. “However, it was conceived in very different market conditions, when narrative and story-rich games had greater appeal.
“With Project 8, we experienced progress and setbacks. During the COVID-19 pandemic, stabilizing the development team proved particularly difficult, but progress continued. While we achieved notable quality improvements in certain areas, several critical aspects of the game and its “The development process remained problematic despite multiple iterations. Over time, delays accumulated and with each milestone, the project budget grew.”
Although “more than half” of the current Project 8 team has been reassigned to other internal projects, the closure of Project 8 would result in a “reduction of personnel involved in its development” and those affected would receive unspecified severance packages and ” psychological counseling and assistance in finding a new job.
The studio said it was still committed to “several key projects,” including Frostpunk 2 and The Alters.
The number of game developers affected by job losses in 2024 alone now stands at around 14,600 people.