Shares of the Polish company 11 bit studios have plummeted to their lowest level in seven years. Investors are concerned that the studio may be planning to cancel a game currently in development and write off its assets.
Project 8
Yesterday, 11 bit studios announced plans to audit one of its unnamed projects. The company's statement indicated that it might write off expenses incurred over years of work on the title based on the audit's results.
The amount to be written off could be 48.4 million zlotys ($11.9 million).
This news has caused panic among 11 bit studios' shareholders.
Which project is being discussed?
Analyst Krzysztof Tkocz from brokerage firm BDM believes that the project might be Project 8 — a new IP with multiplayer, under development since 2018.
The large-scale promotion for the game was initially set to begin at the end of the current year, with a release planned for 2025. However, it has been postponed to 2026. No information is available online about the project except for a short teaser trailer.
He also stated that investors should "prepare for the worst-case scenario — the project's closure." Moreover, this decision might lead to a reduction in the development team, which currently consists of 37 employees.
What about the stock price?
As of the time of writing, 11 bit studios' shares are trading on the Warsaw Stock Exchange at 170 zlotys ($41.7) each. Their price has fallen by 34.3% in the past two days.
Notably, back in July, the company's shares were trading at 700 zlotys ($172.5) each, but plummeted to 340 zlotys ($83.8) following the release of Frostpunk 2 in September. The title's launch did not satisfy investors.
In just four months—from September to December—the company's share value dropped by nearly 70%.
Beyond just 11 bit studios
As noted by Bankier, a similar fate has befallen 20 companies within the Polish gaming index WIG-gry.
Top 5 Polish gaming companies with the largest stock drop in 2024:
- People Can Fly — down 70.8% (from 30.7 to 8.67 zlotys each);
- 11 bit studios — down 68.9% (from 543 to 170 zlotys each);
- Drago Entertainment — down 66% (from 58.8 to 20.4 zlotys each);
- Creepy Jar — down 58.2% (from 621 to 253 zlotys each);
- Games Operators — down 51.4% (from 30 to 15 zlotys each).
The only exception is CD PROJEKT, whose shares have increased by 60.1% since the start of the year.