Latest Developments at 11 Bit Studios
- 11 Bit Studios has halted the development of Project 8, a narrative-focused console game, citing market shifts.
- An undisclosed number of employees involved in the project will face layoffs due to this cancellation.
- The studio’s current focus is on The Alters, which is now slated for a release in early 2025.
Based in Warsaw, 11 Bit Studios, known for its successful city builder series Frostpunk, is undergoing significant changes following the cancellation of an unannounced console game. This decision, influenced by evolving market trends and concerns regarding the game’s profitability, will lead to staff reductions. Concurrently, the studio is channeling its resources into developing a new sci-fi survival game titled The Alters.
This year has proven challenging for 11 Bit Studios. Following the launch of Frostpunk 2 in September, the company’s shares on the Polish mWIG40 index have experienced a steady decline. Despite achieving sales of over 350,000 copies within the first week of release, financial analysts have pointed to disappointing ratings as a factor for this downward trend. A Reuters report elaborated on how the game did not meet initial expectations. Additionally, the studio has pushed back the launch of The Alters from November to early 2025, aiming to enhance the game and its marketing strategies.
Cancellation of Project 8
The recently scrapped Project 8 had been in development since 2018, involving a team of 37 members as of late September. The cancellation is projected to result in a financial loss of approximately PLN 48.4 million (around $11.8 million) for the studio. In light of this decision, affected employees will be provided with severance packages and support for mental health and job transitioning, according to CEO and Management Board President Przemek Marszal. Notably, over half of the Project 8 team may be reassigned to other projects or new initiatives that the studio has yet to disclose.
The video game industry has faced significant layoffs in 2024, with nearly 15,000 workers reportedly losing their jobs, as noted in a tracking report by journalist Mike Straw. Recently, CBC Radio Canada highlighted that WB Games Montreal, the developer behind Gotham Knights, laid off 99 employees.
In the wake of Project 8’s cancellation, Marszal indicated that the assets created for the game may potentially be repurposed for future projects. He reassured stakeholders that 11 Bit Studios remains committed to a slate of key projects, including Frostpunk 2, which was honored as the Best Sim/Strategy Game at The Game Awards 2024. An upcoming roadmap for Frostpunk 2, shared in November, indicates a planned console release in 2025 along with several expansions.
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