After more than seven years of work, the development of the sandbox RPG Hytale is being canceled, and developer Hypixel Studios is closing its doors as per a decision made by parent company Riot Games.

Noxy, co-founder of Hypixel, shared this challenging news with the team, stating: “Today, I shared some incredibly tough news with the Hypixel Studios team: we’re ending development on Hytale and beginning the process of winding down Hypixel Studios over the next few months. 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.”

Hytale was first introduced in 2018 and had been undergoing development for years before becoming a part of Riot Games in 2020. The anticipated launch initially slated for 2021 was postponed to 2023, with further delays thereafter.

As development progressed, challenges arose. Noxy noted that as expectations shifted and the genre matured, their ambition became increasingly complex, leading to the conclusion that a compromise would undermine the project’s unique essence.

Riot has reportedly not found other investors or buyers to support the continuation of Hytale, although support and resources are being provided to the affected team members during this transition.

In the meantime, the popular Hypixel Minecraft server, separate from the studio, will continue operating without interruption.