Riot Games has officially cancelled the long-delayed sandbox RPG Hytale and announced the closure of Hypixel Studios, the development team behind the project. The decision, confirmed on June 24, 2025, marks the end of a challenging journey for the game, which had garnered significant attention since its 2018 reveal.
Hypixel Studios co-founder Aaron “Noxy” Donaghey shared the news in a public statement, calling the outcome “difficult” for both the studio and Riot Games. “Despite years of iteration, technical overhauls, and strategic reviews, we couldn’t find a version of Hytale that delivered on its original promise,” Donaghey said. The studio’s vision for a blocky, Minecraft-inspired sandbox RPG clashed with the project’s growing complexity, leading to its cancellation.
Hytale’s Troubled Development
Unveiled in 2018, Hytale promised an expansive sandbox experience with a vibrant aesthetic. After Riot acquired Hypixel Studios in 2020, the game faced repeated delays, missing target launch windows in 2021 and 2023. The team reworked the engine and scaled up ambitions, but the evolving genre and internal expectations complicated the roadmap.
A Difficult Update About Hytale
Hey Everyone,
Today, I shared some incredibly tough news with the Hypixel Studios team: we’re ending development on Hytale and beginning the process of winding down Hypixel Studios over the next few months.
This is not the outcome any of us – at…
— Noxy @ Hypixel Studios (@Noxywoxy) June 23, 2025“The further we went, the more we realised the scope required significant compromises,” Donaghey explained. Efforts to reduce features or timelines failed to align with the game’s creative identity. Riot explored third-party investors or buyers to salvage the project, but no viable path emerged.
Impact on Hypixel Studios
Hypixel Studios, with over 70 global employees, will now wind down operations. Riot Games provides severance packages and transition support to affected staff, though the number of layoffs remains undisclosed. The original Hypixel Minecraft server, operated separately, will continue unaffected.
The cancellation reflects broader challenges in the gaming industry, with layoffs persisting across studios in 2025. Despite the setback, Donaghey expressed pride in the team’s efforts and gratitude for Riot’s support. “The ideas and spirit behind Hytale remain with us,” he said. “The lessons will carry forward.”
As the gaming community processes this news, the focus shifts to what’s next for Riot Games and the former Hypixel Studios team. While Hytale won’t see the light of day, its legacy may inspire future projects.
