By Sagar V. Mankar 
11 Bit Studios, the developer behind the highly anticipated survival game Frostpunk 2, has announced layoffs following the cancellation of an unannounced project codenamed ‘Project 8.’ The company’s president, Przemysław Marszał, explained that the decision stemmed from shifting market conditions and internal challenges that made the project unsustainable.
Work on Project 8 initially began in 2018, during a time when narrative-driven, story-rich games had stronger commercial appeal. By September 2024, the studio had invested approximately 48.4 million PLN ($11.8 million) into the project, with 37 team members actively involved. Despite the time and resources dedicated to the title, Marszał stated that the game encountered significant challenges and critical issues that couldn’t be resolved without extending the production timeline and increasing the budget.
Marszał elaborated on the studio’s findings, pointing out that while the team achieved some breakthroughs, persistent challenges raised doubts about the game’s long-term profitability. Adjusted sales forecasts, driven by market changes, added further concerns. Ultimately, management lost confidence in the project’s success and made the difficult decision to discontinue development.
However, Marszał emphasized that not all is lost. He mentioned that half of the team members from Project 8 would have opportunities to transition into other existing projects or upcoming initiatives within the studio. One such project is The Alters, a survival game set for release in 2025, which Marszał described as “highly promising” from a business perspective.
The company also hinted at repurposing assets from Project 8 in future developments, ensuring that the creative and technical work done so far does not go entirely to waste. Marszał reassured fans and stakeholders that 11 Bit Studios has a clear roadmap for the future, with several initiatives already underway to fill the gap left by Project 8’s cancellation.
This is not the first time the studio has faced workforce adjustments. In late 2023, 11 Bit Studios quietly eliminated eight roles following production changes on another unnamed project. Some affected employees were reshuffled into different teams, while others were let go.
Frostpunk 2 remains a key focus for the studio, with plans for a PlayStation 5 and Xbox Series X|S release in 2025, following its initial PC launch.
Sources: Official statements from 11 Bit Studios, company financial disclosures.