11 Bit Studios has reduced its workforce by an undisclosed number and has canceled its Project 8 console game

11 Bit Studios, the creator of Frostpunk, has ceased work on its initial console-focused endeavor, known as Project 8, which has led to several layoffs within the company.

The project, which began in 2018, had amassed a team of 37 by the end of September 2024, with development costs reaching PLN 48.4 million ($11.8 million). A recent analysis prompted the cancellation, as explained in a statement on the studio's website. 11 Bit Studios' leadership decided to halt the project after their review. Przemysław Marszał, the studio president, noted that over half of the team would be reassigned to other projects within the company.

Employees affected by these layoffs will be provided with severance, career support, and mental health resources.

The studio is currently evaluating how to repurpose the assets from Project 8 for potential use in future projects.

Marszał mentioned, "Our initial vision for Project 8 was ambitious, aimed at engaging console players with an engaging storyline. However, it was developed in different market conditions where such narrative-driven titles were more in demand."

He discussed various hurdles during the game's development, particularly during the COVID-19 pandemic, which caused delays and increased the budget with every new phase of development. The evaluation of the latest phase was the deciding factor for discontinuing Project 8.

"Unfortunately, our assessment showed ongoing issues that required further development extensions and budget hikes," Marszał explained. "These complications, combined with revised sales projections due to the shifting market landscape, led us to question the project's profitability."

Consequently, 11 Bit's management concluded they could not ensure the completion of Project 8 on schedule or maintain the desired quality, leading to its cancellation.

Project 8 was among seven initiatives 11 Bit Studios agreed to pursue in 2020, with a commitment of over $21 million, according to a report on GamesIndustry.biz.

Earlier, the studio had postponed another anticipated release named The Alters to 2025.