Hypixel Studios, Backed by Riot Games, Ends Development of Hytale and Begins Wind-Down

On Monday, Hypixel Studios officially announced the end of development for Hytale, the studio’s long-anticipated sandbox RPG project. In a statement released on X, co-founder Aaron “Noxy” Donaghey confirmed that the company will also begin winding down operations over the coming months. The decision follows years of development, iteration, and internal reassessment of the project’s scope and viability.

The statement emphasizes that this outcome was not what either Hypixel Studios or its parent company, Riot Games, had hoped for. “After years of pushing forward, adapting, and exploring every possible path, it became clear we couldn’t bring Hytale to life in a way rthat truly delivered on its promise,” Noxy wrote. While the team explored multiple alternatives — including reducing the game’s scope, adjusting timelines, and rethinking the project’s direction — each option would have required significant compromises. “Each of those options would have meant compromising on what made Hytale special in the first place,” he continued. “It wouldn’t have been the game we set out to make. And it wouldn’t have been the game you deserve.”

Originally announced in 2018, Hytale was conceived as a genre-blending title that combined sandbox creativity, procedural generation, multiplayer minigames, and RPG storytelling. It quickly attracted attention from the gaming community, in part due to the popularity of the original Hypixel Minecraft server. The studio was acquired by Riot Games in 2020, with the goal of scaling development and realizing the game’s ambitious vision.

However, according to Noxy, the development process became increasingly complex over time. “As our vision evolved and the genre matured around us, the bar kept rising. Our technical ambitions grew more complex, and even after a major reboot of the game engine, the team found that Hytale still wasn’t as far along as it needed to be.”

The announcement also clarifies that the Hypixel Minecraft server, which operates independently from Hypixel Studios, will remain unaffected and continue its normal operations. “Just to clarify — this doesn't affect the Hypixel server on Minecraft. It's run separately from Hypixel Studios and will continue to operate as usual,” Donaghey noted.

According to Noxy, Riot provided the Hypixel team with the opportunity to seek investors or potential acquirers who might have continued the project, but no viable path emerged. Now, as the studio moves toward closure, Riot is supporting the team with severance and career resources. “They’re ensuring our team is supported with generous severance and resources to help them find what’s next. It’s not just thoughtful — it’s human,” Noxy wrote.