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11 bit Studios Cancels Project 8: What Investors’ Legal Action Actually Involved

11 bit studios cancelled Project 8 in December 2024. Shareholders explored a special-auditor request and SII notified Poland’s regulator, but the available reporting does not confirm a lawsuit or finding of wrongdoing.
From TheFinanceBase Team3 min to read
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11 bit studios cancelled Project 8 in December 2024 after reporting that it no longer saw a realistic prospect of a satisfactory return. The project’s carrying amount was PLN 48.4 million as of 30 September 2024—roughly the “$12 million” cited in some coverage. Shareholders sought an explanation and explored a special-auditor process, while the Shareholders’ Association of Individual Investors (SII) said it had alerted Poland’s financial regulator to suspected disclosure violations. The available reporting does not establish that investors filed a lawsuit or that a regulator found wrongdoing.

What happened to Project 8?

Project 8 was an in-house game that 11 bit studios said it had been developing since as early as 2018. It was intended to be the company’s first title designed specifically for console gamers. As of 30 September 2024, the project team comprised 37 people, according to the company’s cancellation notice. 11 bit studios’ announcement

On 11 December 2024, 11 bit announced an in-depth review of a game project and the possibility of an impairment. SII later noted that this announcement did not identify Project 8. On 17 December, the management board resolved to discontinue the game. The company cited a lack of realistic prospects for a satisfactory return, as well as doubts about completing it within a reasonable timeframe and at a satisfactory quality level. SII’s January 2025 account

Why does coverage call it a $12 million game?

The company disclosed the project’s carrying amount in Polish złoty, not dollars. Its cancellation notice put the amount at PLN 48,432,077.90 as of 30 September 2024. The 2024 annual report later recorded an impairment loss of PLN 48,421,309, net of a PLN 635,710 grant. These are accounting figures reflecting the project’s recorded value and impairment; they are not a sale price or a company-confirmed US-dollar spending total. “$12 million” is a rounded dollar rendering used in secondary reporting.

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What reason did 11 bit studios give for cancelling it?

President Przemysław Marszał said the concept was developed in a different market environment, when narrative-driven, story-rich games had stronger appeal. The company also said changing market trends were not the only factor and that it had lost confidence in delivering the game in a reasonable timeframe and at satisfactory quality. Those are management’s explanations for the decision, not independent findings about why the project failed.

The annual report says more than half of the affected team members were offered transfers to existing teams or reassignment to new projects; some employees were made redundant. The reported information does not establish a final layoff count.

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What did shareholders and SII do?

Shareholders’ proposed special-auditor route

In January 2025, SII reported that minority shareholders wanted to form a shareholder agreement representing 5% of voting rights. Their aim was to seek appointment of a special auditor to examine Project 8 spending and the reliability of company information. SII said it supported the initiative. The reporting reviewed here does not establish that the 5% threshold was reached, that an auditor was appointed, or that an investigation was completed. SII’s January 2025 report

SII’s notification to Poland’s financial regulator

In May 2025, SII said it had notified the Polish Financial Supervision Authority (KNF) in January about suspected breaches of disclosure duties and was still awaiting further information from the regulator. This is an allegation reported by SII, not an established regulatory violation. SII’s May 2025 report

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Was a lawsuit filed?

The available sources do not confirm a court lawsuit. They document shareholders’ effort to pursue a special-auditor mechanism and SII’s notification to the KNF; neither action is the same as filing a lawsuit. The reporting also does not establish a regulator penalty, an official finding of misconduct, or a completed special-auditor inquiry.

SII’s May report described the company as disputing that the project’s cancellation was disclosed too late or improperly, while acknowledging that management and changing player expectations contributed to the project’s failure. The same report relayed Marszał’s statement to Parkiet that impairment tests were conducted twice a year and that the signal to end the project became clear in November or December 2024. That timing account is secondhand reporting, not an independent regulator or court finding.

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What investors should take from the dispute

The confirmed event is a cancelled game and a substantial accounting impairment. The governance dispute concerns whether the company’s disclosures about the project and its deterioration were adequate and timely. Shareholders’ requests and SII’s regulator notification show that investors were seeking scrutiny, but they do not by themselves prove a breach or a legal claim’s success. The material reported through May 2025 does not establish what happened afterward with the KNF, the proposed auditor, or any possible court action.

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