Polish studio 11 bit studios, best known forFrostpunkandThis War of Mine, has cancelled a game, codenamedProject 8, that had been in development for years.Described as a narrative-rich game that would also serve as the developers first console-centric title, 11 bit studios has announced that it has cancelled the development of Project 8. Starting development in 2018, by September 30, its development team had expanded to 37 people, while 11 bits investments into the project had grown to PLN 48.4 million (which is roughly $11.79 million).Our vision for Project 8, which was intended to be our first title designed specifically for console gamers, was bold and exciting, says 11 bit studios president Przemysaw Marsza. However, it was conceived under very different market conditions, when narrative-driven, story-rich games held stronger appeal.He went on to speak aboutthe challenges thatProject 8faced during development, from the COVID-19 pandemic to a growing budget to the aforementioned changing market conditions, all of which ultimately raised significant doubts about the projects overall profitability.WithProject 8, we experienced both breakthroughs and setbacks. During the COVID-19 pandemic, stabilising the development team proved particularly difficult, yet progress continued, he explained. 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 projects budget grew.When assessing a project, the Management Board always considers its development progress, including internal reviews and independent surveys, Marsza added. We also factor in market analyses and the games sales and marketing potential. 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 projects overall profitability.11 bit studios says it will have to recognize an impairment loss of PLN 48.4 million due toProject 8scancellaton, while the studio is also facing layoffs as a result, with the development team working on the project being made redundant.Whether the entire teams roles are being cut or if some will be transferred to other projects within the studio hasnt been mentioned. 11 bit says it will offer severance packages and assistance in seeking new employment to those affected, and that its currently auditing the assets developed forProject 8 to assess their potential application in other initiatives.2024 saw the launch of 11 bit studiosFrostpunk 2for PC, which is also coming to PS5 and Xbox Series X/S in 2025. Next year will also see the release of the studios sci-fi survival titleThe Alters.