11 Bit Studios Hit With Layoffs, Cancels Project 8 - News
by William D'Angelo , posted on 01 January 2025 / 5,626 Views
11 Bit Studios announced it has laid off a number of employees following the cancellation of its first console focused titled Project 8.
Studio president Przemysław Marszal in a post on the company's website said over half of the team working on Project 8 will be offered opportunities on other projects within the studio, including as-yet-unannounced initiatives.
Those laid off will receive severance packages and the studio "will provide psychological counselling and assistance in finding new employment to anyone who wishes to take advantage of it."
"Our vision for Project 8, which was intended to be our first title designed specifically for console gamers, was bold and exciting," said Marszal. "However, it was conceived under very different market conditions, when narrative-driven, story-rich games held stronger appeal."
He added, "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."
The tipping point for the game came over the most recent milestone was hit.
"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 Marszal.
"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."
Marszal concluded, "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."
A life-long and avid gamer, William D'Angelo was first introduced to VGChartz in 2007. After years of supporting the site, he was brought on in 2010 as a junior analyst, working his way up to lead analyst in 2012 and taking over the hardware estimates in 2017. He has expanded his involvement in the gaming community by producing content on his own YouTube channel and Twitch channel. You can contact the author on Twitter @TrunksWD.
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