Frostpunk 2 Fueled Revenue Growth for 11 Bit Studios Despite Challenging 2024

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Polish developer 11 Bit Studios announced that Frostpunk 2 had sold 592,000 copies by December 2024, generating revenue of $18.5 million. According to the company’s financial report for the fiscal year ended December 31, 2024, annual revenues increased by 168.9% compared to the previous year, reaching $37.3 million, marking a record year for sales. The key factor was the launch of Frostpunk 2, alongside strong sales of older titles like Frostpunk and This War of Mine.

Despite the sales success, 2024 proved to be challenging for 11 Bit Studios. The increase in revenue did not result in higher profitability, and the company reported an operating loss of $753,000. Net profit amounted to $1.8 million, bolstered by deferred tax relief. A significant blow came in December when 11 Bit canceled Project 8, a narrative-driven console game, which resulted in an impairment loss of $12.105 million and layoffs within the studio.

The decision to cancel the project was made due to the competitive market for the game’s genre, extended development deadlines, and rising costs that made a return on investment impossible. The company also recognized impairment losses for already released titles The Thaumaturge and Creatures of Ava.

Przemysław Marszał, President of the Management Board of 11 Bit Studios, acknowledged the gravity of the situation, stating that 2024 was a year of hard work, difficult decisions, and lessons learned. He expressed pride in the studio’s achievements but also the need to adapt to a rapidly changing industry. To ensure future success, 11 Bit plans to diversify the scope and time frames of its projects, focusing on financially viable opportunities.

Looking ahead, the studio has initiated production on a new Frostpunk project planned for release in 2027, and a larger title has also been approved for 2029. Marszał highlighted the company’s strong financial position and expressed confidence that cash reserves will significantly increase by the end of 2025, despite investments in new internal and partnered games.