Hytale development axed after game studio admits preparation for closure

The sun sets over Hytale's woodland environment, with hues of pink and yellow spreading across the sky.

In a devastating blow, a decade of game development has ended in the cancellation of Hytale.

Hypixel Studios has been building the sandbox with support from Riot Games since 2015, but the development studio now prepares for closure.   

What went wrong in Hytale’s development?

Officially announced in December 2018, Hytale was intended to be a sandbox set to rival Minecraft. The 2018 trailer garnered 61 million views, and Riot Games acquired Hypixel Studios, the developers, in 2020. 

Despite the enthusiasm for increased customisation opportunities and a new look to the block-based sandbox survival genre, a decade of development has now officially ended.

Evident from the high game trailer viewership, the audience lay ready and waiting for the game’s release. So, what went wrong?

Hytale was initially set to release in 2023. 

However, Hypixel’s Summer 2022 development update revealed that this was no longer possible due to a significant overhaul in development. In fact, due to limitations surrounding coding language, the team began rebuilding its entire game engine. 

As the original release date passed, developers continued prototyping and developing the C++ engine. Little concrete information was offered about the game itself. 

Hypixel’s 2023 was slated by one fan as the equivalent of “submitting a last-minute school assignment with just the bare minimum to pass.” Millions of potential game users were growing increasingly impatient. Meanwhile, developers claimed to be on track to meet their milestones. 

“We couldn’t bring Hytale to life in a way that truly delivered on its promise” – where development meets a tragic end

Following the cancellation, it is evident that these milestones were not achieved in the long term. 

Hypixel Studios co-founder, “Noxy,” took to social platforms on June 23rd to explain the heartbreaking news to fans. Ultimately, the development team were unable to deliver the game that was promised.

“This is not the outcome any of us – at Hypixel or at Riot – wanted. But after years of pushing forward, adapting, and exploring every possible path, it became clear we couldn’t bring Hytale to life in a way that truly delivered on its promise.”

Noxy also took time to thank those who had awaited the game’s release with such anticipation.

“To our community: thank you. Your belief in Hytale kept us going through thick and thin. Your energy, creativity, and support inspired us to do the best work of our lives. Even though we won’t be the ones to bring this game into the world, we still believe in what it stood for and in the incredible potential of this genre.”

The announcement is a stark contrast to the optimism expressed in Hypixel’s Spring 2025 update. Developers publicly celebrated their progress as recently as March, claiming that “Every month Hytale gets closer to the game we’ve dreamed of delivering.”

Reflections and omens for the game development industry

The game development industry has suffered from tsunamis of layoffs over the past several years. Hytale’s cancellation and the resulting impending collapse of Hypixel Stuios will add to these layoffs.

As identified online, Noxy’s online posts clarifying the fate of Hytale also revealed that the game’s developers were informed of the cancellation the same day as the public. 

Despite the abrupt end to their project, Noxy reassures that Riot Games is supporting developers in transitioning out of the studio’s employment with “generous severance and resources to help them find what’s next.” 

He also highlights a significant challenge to game developers in the industry. Noxy admitted how “brutally hard” game development is. In his words, this brutality is particularly pronounced when attempting to connect with a creative and passionate community. 

Competition within game production means that the industry, its software, and expectations are all subject to violent change. In Noxy’s words, “Over time, as our vision evolved and the genre matured around us, the bar kept rising.”

This statement raises questions about whether the gaming industry is ultimately outpacing itself. 

Even the most highly anticipated projects, backed by industry giants, can become stranded in an abyss of change.