11 Bit Studios Cancels Project 8, Announces Layoffs

The Frostpunk developer cites shifting market trends and development challenges for ending its console-focused game after six years of work.

Project 8, 11 Bit Studios' first console-centric game, was canceled after six years of development and $11.8 million in production costs.
The studio attributed the decision to shifting market trends, declining demand for narrative-driven games, and unresolved development challenges.
Development setbacks, including delays during the COVID-19 pandemic and budget overruns, were key factors in the game's cancellation.
Over half of the 37-person Project 8 team will be offered roles on other projects, while affected employees will receive severance, career assistance, and counseling.
11 Bit Studios is now focusing on upcoming projects, including Frostpunk 2 and The Alters, though the latter's release timeline may face uncertainty.