In a move that has sent ripples through the gaming community, Hypixel Studios, the developer behind the much-anticipated sandbox RPG Hytale, has announced its closure along with the cancellation of the game. The announcement was made public on June 23, 2025, by Aaron "Noxy" Donaghey, co-founder and CEO of Hypixel Studios, via an update on the studio's website and social media platforms.
Hytale was envisioned as a Minecraft-style game infused with rich RPG elements, designed to capture the imagination of a passionate and creative community. The game had been in development since 2015, spearheaded by the same team responsible for the immensely popular Hypixel server on Minecraft. The reveal trailer for Hytale, released in 2018, drew significant attention, amassing 61 million views, signaling strong interest from gamers worldwide.
Riot Games, the company behind global hits like League of Legends and VALORANT, acquired Hypixel Studios in April 2020, aiming to bring Hytale to a wider audience. Initially, the game was slated for public release in 2021. However, development delays pushed this target to 2023 at the earliest, and subsequently, the release was postponed indefinitely.
In his statement, Noxy described the decision to cancel Hytale and wind down Hypixel Studios as "painful" and one that came after exhausting every possible avenue to salvage the project. "This is not the outcome any of us – at Hypixel or at Riot – wanted," he wrote. The core challenge, according to Noxy, was that despite years of effort, the team "couldn't bring Hytale to life in a way that truly delivered on its promise." He elaborated on the complexities faced during development, noting, "Game development is brutally hard – especially when you're trying to build something original that speaks to a creative, passionate community."
Over time, the vision for Hytale evolved, and as the genre matured, the expectations and technical ambitions grew increasingly complex. Even after undertaking a major reboot of the game engine, the team found that the project "still wasn't as far along as it needed to be." Noxy admitted, "It became clear we'd need a lot more time to get it to a place where it could support the ambitious vision for the game."
The studio explored various alternatives, including reducing the game's scope and adjusting timelines. However, each option risked compromising the very elements that made Hytale special. "It wouldn't have been the game we set out to make. And it wouldn't have been the game you deserve," Noxy emphasized.
Following Riot's decision to pull its backing, Hypixel Studios sought new investors or acquirers who could continue supporting Hytale's development. Unfortunately, these efforts did not bear fruit. As a result, the studio is now in the process of winding down operations over the coming months.
Throughout this difficult transition, Riot Games has been praised for its "thoughtful" and "human" approach, providing generous severance packages and resources to help affected staff find their next opportunities. Noxy expressed deep gratitude to Riot for its unwavering support, stating, "We still believe in Hytale. We believe in the team, and are forever grateful to every member, past or present, who poured their love into the game."
Importantly for fans, the beloved Hypixel Minecraft server will remain operational, as it functions independently from Hypixel Studios. This means that the vibrant community built around the server will continue to thrive despite the studio's closure and the cancellation of Hytale.
Reflecting on the journey, Noxy acknowledged the decade-long effort invested in Hytale and the lessons learned along the way. "We're proud of what we built, and we'll carry those lessons forward into whatever comes next," he concluded. While the chapter on Hytale has closed, the spirit and creative ambition behind the project live on, leaving open the possibility that its influence will shape future endeavors in the gaming landscape.
