Hytale cancelled: Riot Games announce layoffs as Hytale gets cancelled after 7 years of development

Riot Games has officially cancelled development of the long-delayed sandbox RPG Hytale and will begin the process of closing Hypixel Studios, the team behind the project.

The decision was confirmed by Hypixel co-founder Aaron “Noxy” Donaghey, who described it as a difficult outcome for both the studio and its parent company.

“This isn’t the conclusion we had hoped for,” Donaghey said in a public statement. “Despite years of iteration, technical overhauls and strategic reviews, we ultimately couldn’t find a version of Hytale that delivered on its original promise.”

Originally unveiled in 2018, Hytale had been in development for several years before being acquired by Riot in 2020.

The game had attracted attention for its blocky aesthetic and sandbox structure reminiscent of Minecraft, but never reached a playable release. Target launch windows in 2021 and later 2023 were repeatedly delayed as the studio reworked its ambitions and engine.

Over time, the project grew increasingly complex. As the genre evolved, internal expectations reportedly shifted, and the development roadmap became harder to follow.

“The further we went, the more we realised the scope required significant compromises,” Donaghey said. “None of those options would have produced the experience we envisioned.”

Efforts to reduce features, change timelines or scale back the project were ultimately deemed incompatible with the creative identity of the game. According to the studio, Riot also explored the possibility of finding a third-party investor or buyer to continue development, but no viable path was found.

Hypixel Studios employed over 70 staff globally, though the exact number of redundancies has not been disclosed. Riot is said to be offering severance packages and transition support to affected employees.

While Hytale will not continue, the original Hypixel Minecraft server — operated separately from the studio — will remain online and unaffected.

The cancellation arrives amid a challenging period for the games industry. Layoffs across multiple studios have persisted through 2025, continuing a trend from previous years.

Donaghey closed by expressing pride in the team’s work and gratitude for Riot’s support: “Although we’re closing this chapter, the ideas and spirit behind Hytale remain with us. What we built wasn’t wasted — the lessons will carry forward.”