11 bit studios Invests in New Titles Despite Some Setbacks in 2024

11 bit studios from Poland looks back on a mixed year in 2024. Frostpunk 2 was a success, but not all projects were as successful, and an unannounced game was cancelled. According to president Przemysław Marszał, the games industry is changing rapidly.

In 2024, 11 bit studios from Poland generated revenues of PLN 140.54 million (+168.9% year-on-year; approx. €32.77m), the highest revenues in the company's history. The increase in revenues was mainly driven by Frostpunk 2, which sold 592,000 copies by the end of December 2024 and generated revenues of PLN 69.73 Million (approx. €16.3m). Legacy titles such as Frostpunk and This War of Mine performed better than in 2023, generating revenues of PLN 35.75 million (+13.7%; approx. €8.36m). The company's publishing division released a further three titles in 2024, generating PLN 36.54 Million (approx. €8.54m).

The strong sales growth was not matched by a corresponding increase in margins. In 2024, the company recorded an operating loss of approximately PLN 2.84 million (approx. €663,600), while net profit totalled PLN 6.90 million (approx. €1.61m), reflecting the recognition of a deferred tax asset. "We hoped for significantly more, but in December we made the decision to discontinue the development of a game codenamed Project 8, which led to a non-cash impairment loss of PLN 48.42 million," explained Przemysław Marszał, the company's President of the Management Board. The reasons given were a worsening market environment for the genre, longer production times and rising costs. The Thaumaturge and Creatures of Ava, both published by the company's publishing division, also failed to gain traction. These write-downs totalled PLN 18.34 million (approx. €4.29m). Indika, on the other hand, returned to profit shortly after its publication.

For 2025, 11 bit studios is continuing intensive development work on Frostpunk 2. "We have barely begun monetising this title," says Marszał. There are plans for console releases, DLCs and new gameplay features that are set to improve user ratings. "We are also actively preparing for the scheduled 13 June 2025 release of The Alters, developed by our in-house teams. We have strong confidence in this title, which is strategically very important to us," Marszał confirmed. The publishing division will release two other titles: Moonlighter 2: The Endless Vault, a sequel to the company's most successful third-party title to date, developed by Digital Sun and scheduled for release in the summer, and the Danish-developed Death Howl.

According to Przemysław Marszał, the gaming industry is going through a period of rapid change. "As a developer and publisher, we intend to diversify both the scale of our projects and their development timelines. This also means capitalising on near-term, financially attractive opportunities. This underlies our decision to initiate production on the next project set in the Frostpunk universe, which we plan to launch as early as 2027. In parallel, we have commenced development on a larger-scale title, targeted for release in 2029. (...) We can confidently outline our future plans. While our 2024 results – affected by non-cash charges – fell short of expectations, both our own and likely those of shareholders and investors, the Company’s financial condition remains strong. Moreover, we are confident that, despite substantial outlays on new proprietary and third-party games, our cash position at the end of 2025 will be significantly stronger than it was a year earlier."

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