Investors of 11 bit studios are demanding an explanation for the closure of a project that nearly $12 million was spent on developing
In Poland, the scandal continues to smolder around the game codenamed Project 8, whose development was halted back in December 2024. Investors and journalists are demanding that 11 bit studios' management reveal the reasons for its closure. The matter may reach the country's financial oversight agencies.
The timeline of the situation is as follows:
- In August 2024, the company president stated that Project 8 development was on schedule;
- In December, 11 bit studios published a press release indicating that the studio was auditing a certain project, which could result in the project's closure and a write-off of nearly 50 million zlotys ($12 million);
- The publication led to a further 34% drop in the studio's stock value;
- A few days later, 11 bit studios officially closed Project 8 and laid off part of the team;
- The cessation of development was explained by doubts about the game's ability to recoup costs and turn a profit in the future (development had been ongoing since 2018, with plans for it to be 11 bit studios' first console-focused project, the game's budget and development timeframe had been extended several times);
- In January 2025, the Polish Association of Individual Investors accused the management of misleading investors and ineffective market communication (including comments in September that everything was fine with the project, while it was closed in December, as well as raising questions about how the company announced the closure);
- In May, the same Association published an article stating that "without explanations about Project 8, the company will never regain investors' trust," and noted that 11 bit studios' management was trying to cover up the story;
- In June, during the company's annual shareholders meeting, some investors again raised questions about Project 8 with the management, who refused to answer them and requested that questions be submitted in writing;
- Shareholders also requested an independent audit of Project 8, but unsuccessfully;
- By early August, 11 bit studios had left investors' questions unanswered and refused to comment on the issue with the Polish press;
- The Association of Individual Investors notified the Polish Financial Supervision Authority of a potential breach of information disclosure obligations.