Layoffs continue as 11 bit studios ceases development on Project 8

Well, here we go again. 11 bit studios, the Polish-based independent video game development and publishing studio—best known for the emotionally poignant This War of Mine, as well as the more recent Frostpunk 2—has discontinued the development of the code-named game, Project 8.

In a statement released December 17th, the President of the Management Board of 11 bit studios, Przemysław Marszał, announced that the development of Project 8 would be discontinued forthwith. Writing that:

“With Project 8, we experienced both breakthroughs and setbacks. During the COVID-19 pandemic, stabilising the development team proved particularly difficult, yet progress continued. While we achieved noticeable quality improvements in certain areas, several critical aspects of the game and its development process remained problematic despite multiple iterations”.

Marszał goes on to say that “our findings revealed unresolved issues and challenges that would require further extensions of the production timeline and corresponding budget increases to address. This, coupled with revised sales forecasts, largely reflecting the changing market environment, raised significant doubts about the project’s overall profitability”.

The statement adds that at the end of September 2024, Project 8’s total production cost was 48.4 million PLN (or 18.9 million AUD).

Project 8 began production back in 2018, and was projected to be a “bold and exciting narrative-driven, story-rich game“. It was announced through a short technical trailer titled ‘Project 8| A Moment of Unease’ back in 2021.

Unfortunately, the shuttering of Project 8 will also result in another round of layoffs in a year when the video games industry is oversaturated with staff reductions and team restructuring. However, Marszał has assured that all 37 members of the development team impacted will not only receive a significant severance package, but also be able to access therapy and career counselling.

In addition to this, Marszał stressed that the team behind Project 8 will be offered opportunities to transition to other existing teams, or new initiatives and yet-to-be-announced projects at the studio.