Hytale canceled as Riot Games confirms developer Hypixel Studios is shutting down

Published on: Jun 24, 2025 01:30 AM IST

After being in development for nearly a decade, sandbox title Hytale has been shelved, with Hypixel Studios set to wind down operations.

Hytale, the much-awaited sandbox game in development since 2015, has officially been canceled as Hypixel Studios begins the process of shutting down operations over the next few months. The announcement was made by CEO and co-founder Noxy (Aaron Donaghey) on Monday, June 23.

Hytale canceled after being in development since 2015
Hytale canceled after being in development since 2015

Why did Hytale get canceled?

In his statement, Noxy said this was not the outcome anyone at Hypixel or Riot Games wanted. He added that, despite almost a decade of adapting and exploring every possible path, they could not bring Hytale to life in a way that would “truly” deliver on its promise.

According to Xbox Era, the cancellation came after years of high anticipation for the video game, which was initially pitched as a blend of Minecraft-style creativity and structured RPG-style adventures.

Hypixel Studios, which was acquired by Riot Games in 2020, had long promoted the game as a genre-defining sandbox experience for PC and Mac. Reports indicated that a playable beta version was in the works, with fans signing up in large numbers.

Minecraft Hypixel server not affected

Noxy stated that mounting technical challenges, an evolving creative vision, and a maturing sandbox genre raised the bar for what the game needed to be. This ultimately made development unsustainable.

The CEO noted that despite a full reboot of the game engine, progress remained slower than necessary. This forced the studio to consider cutting features or compromising on its ambitions.

Ultimately, Noxy said, they decided not to continue development since it would neither be the game Hypixel set out to make nor the one players deserved.

Despite the studio’s closure, he confirmed the popular Hypixel Minecraft server will not be impacted, as it is operated separately from the studio.

Riot Games to support affected employees

Noxy, aka Aaron, thanked the team and the community, expressing appreciation for Riot Games and the fans who supported Hytale. He praised Riot for taking care of the team with generous severance packages and job assistance.

He acknowledged it was a tough decision, and although Hypixel won’t be the ones to launch the game, he and the team still believe in “its message and the great possibilities this genre has.”

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FAQs:

What happened to Hytale?

Development has officially ended due to technical difficulties and the inability to deliver on the game’s full creative vision.

Is Hypixel Studios closing?

Yes, the studio is beginning the process of winding down operations over the coming months.

Will this affect the Hypixel Minecraft server?

No. The Hypixel server is operated separately and will continue to run as usual.

Why did Hytale fail?

According to the studio, technical complexity, rising creative ambitions, and industry shifts made development unsustainable.

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