Frostpunk developer 11 Bit Studios has laid off an unknown number of staff following the cancellation of its console game codenamed Project 8.

Project 8 kicked off in 2018 and at least 37 people were working on it by the end of September 2024. The studio has invested “more than” 48.4m PLN in the game over that time, the equivalent of around £9.4m or $11.8m.

However, the studio said in a statement that although it achieved “noticeable quality improvements in certain areas”, “several critical aspects of the game and its development process remained problematic despite multiple iterations”. This caused delays, and “with each milestone”, the project’s budget grew.

The decision to shut it down finally came after 11 Bit reviewed Project 8’s progress and found “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”.

This meant management lost confidence in the project and its “quality level”, resulting in the termination.

“Our vision for Project 8, which was intended to be our first title designed specifically for console gamers, was bold and exciting,” said Przemysław Marszał, president of the management board of 11 Bit studios. "However, it was conceived under very different market conditions, when narrative-driven, story-rich games held stronger appeal.

“With Project 8, we experienced both breakthroughs and setbacks. During the COVID-19 pandemic, stabilising 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.”

Although “more than half” of the current Project 8 team have been reassigned to other internal projects, Project 8’s closure would result in a “reduction of staff involved in its development” with those impacted receiving unspecified severance packages and “psychological counselling and assistance in finding new employment”.

The studio said it was still commitment to “several key projects”, including Frostpunk 2 and The Alters.

The number of game developers impacted by job losses in 2024 alone now stands at around 14,600 people.