11 bit studios has closed Project 8 and laid off some of the game's developers
The Polish company 11 bit studios has decided to shut down the game codenamed Project 8. Last week, it warned of this potential outcome when it began auditing the project.
“Project 8 was supposed to be our first game designed specifically for console gamers. Its vision was bold and exciting. However, it was conceived in completely different market conditions when games with a focus on narrative and deep storytelling were more popular,” said Przemysław Marszał, Chairman of 11 bit studios.
Marszał added that the development of Project 8 faced numerous challenges. To address these, 11 bit studios increased both the game's budget and production timeline several times, but it was not enough. A recent audit revealed that the Project 8 team needed even more time and money to refine the title. Consequently, the company doubted that the game would recoup expenses and generate profit in the future.
The closure of Project 8 will lead to the write-off of several tens of millions of złoty in expenses. As of September 30, 2024, this amount was estimated at 48.4 million złoty (11.9 million dollars), with subsequent monthly increases of at least 800-900 thousand złoty (197-221 thousand dollars), spent on developer salaries.
11 bit studios wants to utilize some of Project 8's work in other projects. Approximately half of the Project 8 developers will transition to other teams, while the remaining specialists will be laid off. It is known that 37 people were working on Project 8 by the end of September.
Following the closure of Project 8, shares of 11 bit studios have once again dropped in value. At the time of this news report, they are trading at 152.4 złoty (37.53 dollars) per share — the lowest since January 2017.
