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Minecraft Competitor Hytale Shuts Down After a Decade of Development

  • Hypixel Studios, a Riot Games subsidiary, announced in 2025 that it is ending development of Hytale, a Minecraft-like sandbox game.
  • The decision followed nearly a decade of development hampered by complex technical challenges and a failed search for investors to continue the project.
  • A spring 2025 update revealed progress including a new character and engine improvements, but the team could not keep up with rising industry standards.
  • Hypixel CEO Aaron Donaghey described the decision as difficult, explaining that despite years of effort and attempts to overcome challenges, the team was unable to deliver Hytale in a way that met their expectations, while Riot is providing affected employees with severance packages and support.
  • The closure reflects a wider post-pandemic correction in the gaming industry marked by layoffs, despite a Covid-19 boom in user engagement and revenue.
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After hype and ten years of work. Now the game "Hytale" is being scrapped. "This is a painful decision," writes the CEO of Hypixel Studios, Aaron "Noxy" Donaghey.

·Stockholm, Sweden
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criticalhit.net broke the news in on Monday, June 23, 2025.
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