Getting laid off is a nightmare and the timing can make it worse. On Tuesday, December 17, 2024, 11 Bit Studios, the developer behind Frostpunk 2, announced that it had canceled a game it had been developing since 2018 codenamed Project 8.
Frostpunk 2
“The Management Board of 11 bit studios has resolved to discontinue the development of the game code-named Project 8,” the studio announced in the publication. “Project 8 was one of 11 bit studios’ in-house projects, involving 37 team members as of 30 September 2024.”
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Explaining the reason for the cancellation of the project, the President of the Management Board of 11 Bit Studios, Przemysław Marszał, hinted that the taste of console gamers has changed from what it used to be when the project was conceived.
“Our vision for Project 8, which was intended to be our first title designed specifically for console gamers, was bold and exciting. However, it was conceived under very different market conditions, when narrative-driven, story-rich games held stronger appeal,” Marszał said while highlighting the role of the pandemic.
“With Project 8, we experienced both breakthroughs and setbacks. During the COVID-19 pandemic, stabilizing 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. Over time, delays accumulated, and with each milestone, the project’s budget grew.”
At the end of September 2024, Project 8 had gulped PLN 48.4 million (approx. $11.8 million) in development costs. The cost is expected to rise at the rate of PLN 0.8 to 0.9 million (approx. $195,000 to $219,415) monthly, driven by team salaries. However, after assessing the project’s latest milestone, the company lost confidence in its profitability and made the decision to scrap the idea.
“When assessing a project, the Management Board always considers its development progress, including internal reviews and independent surveys. We also factor in market analyses and the game’s sales and marketing potential,” said Marszał.
“Unfortunately, in this case, 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.”
11 Bit Studios’ cancellation of Project 8 will lead to layoffs
The Thaumaturge
The cancellation of Project 8 effectively ended the roles of all 37 developers working on the project. An undisclosed number of the developers working on the project would be let go while more than half will be offered opportunities in other existing teams or new initiatives. The layoff will take a phased nature.
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“We will provide psychological counseling and assistance in finding new employment to anyone who wishes to take advantage of it,” Marszał said. The board president also hinted that the assets already created for Project 8 may be applied to other initiatives.
“Looking ahead, 11 bit studios is continuing intensive work on several key projects, including Frostpunk 2, which recently became the Company’s first title to win the industry’s prestigious The Game Awards. The team is also gearing up for the launch of The Alters, another highly anticipated release.
“But that’s not all. We have a clear and well-defined roadmap for the future and have already taken concrete steps to move forward. Some of these initiatives, which are highly promising from a business perspective, will help fill the gap left by Project 8. We look forward to sharing more details soon.”
Ex 11 Bit Studios employee comment on being laid off
From the studio’s official announcement, it is evident that the number of people leaving the company would likely run into double digits. However, not many of those who the layoff may have impacted have posted about it.
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“Well, it is said, ‘Do your work and stop thinking about the outcome. The universe will figure things out for you’”, cryptically wrote 3D environment artist Ankita Dutta Mou. “So, I decided to do that. As long as I have my PC and the will to work, I am gonna do that no matter I have a job or not.”
Senior concept artist Lina Kit who now has the infamous #OpenToWork green banner on their profile also shared their portfolio mentioning that they have almost 8 years of experience in gamedev.
11 Bit Studios was founded in 2009 and is based in Warszawa. The studio’s philosophy is making universes filled with stories that provoke thought, ask ambiguous questions, and explore the unknown.
