The creators of Frostpunk 2 canceled the “bold and exciting” project after seven years of development because they had lost faith in story-based games

Despite the success of frosty city-building strategy Frostpunk 2, Polish publisher and developer 11 bit studios is forced to tighten its belts. The company announced the cancellation of an unannounced game codenamed Project 8.

Image source: 11 bit studios

Project 8 has been in development since 2018 and was positioned as 11 bit studios’ first console-focused project. Over almost seven years, the company spent 48.4 million zlotys ($11.8 million) on the game; at the end of September, 37 people were working on it.

According to 11 bit CEO Przemyslaw Marszal, the vision for Project 8 “was bold and exciting,” but the project was born in an environment where “story-driven games were in high demand.”

A shot from Project 8

Changing market conditions weren’t the only reason for Project 8’s cancellation. Over nearly seven years of development, the game was delayed several times, causing the budget to grow, and as a result of a recent assessment of progress, the project was abandoned.

The audit revealed unresolved problems that would lead to new transfers and increased budgets. The board of directors lost confidence that 11 bit could achieve a satisfactory level of quality with Project 8 in a reasonable time frame.

The Alters is expected to be released in the first quarter of 2025

The cancellation of Project 8 will lead to layoffs: half of the developers will be offered places in other teams, and the rest will have to say goodbye. The financial implications of the decision will be reflected in 11 bit studios’ annual report.

Currently, 11 bit studios continues post-release support for Frostpunk 2 and is preparing for the release of the philosophical survival game The Alters. The company also says that its plan includes initiatives that will fill the hole left by Project 8.