Hytale: Cancelled, Then Brought Back From the Dead

In June 2025, Hytale was cancelled after 10 years of development, devastating millions of fans. Five months later, the original founder bought back the IP and announced a January 13, 2026 Early Access launch. This is the complete story of Hytale's cancellation, revival, and redemption.

Timeline

From Hype to Heartbreak to Hope

The dramatic journey of gaming's most-watched voxel game

June 23, 2025

Cancellation Announcement

After over 10 years of development, Hytale co-founder Aaron Donaghey announced the game's cancellation and the closure of Hypixel Studios under Riot Games. The announcement was abrupt and devastating for millions of fans who had waited since the 2018 reveal.

"After years of pushing forward, we couldn't bring Hytale to life in a way that delivered on its promise," the announcement stated. The decision came after years of technical challenges, scope creep, and developer burnout that made the project unsustainable.

November 17, 2025

The Revival

In a stunning turn of events, original co-founder Simon "hypixel" Collins-Laflamme announced he had repurchased the Hytale IP from Riot Games. With over 30 developers returning to the project and 10-year funding secured, he committed to launching Early Access on January 13, 2026.

The team would use a four-year-old legacy build that had been abandoned during Riot's ownership, taking the game "back to the original vision for Hytale" as an independent studio once again.

Analysis

Why Riot Cancelled Hytale

The challenges that led to the shutdown

Scope Creep


What began as a PC voxel game evolved into an overly ambitious cross-platform, live-service title. As the vision expanded and the voxel genre matured, the bar kept rising. The scope became unsustainable for the team and timeline.

Technical Challenges


The team underwent a major reboot of the game engine, but even after years of work, Hytale still wasn't as far along as it needed to be. Constantly rebuilding the engine slowed development significantly and created compounding technical debt.

Developer Burnout


After nearly a decade of development with repeated delays and engine rebuilds, team members experienced significant burnout. The emotional and creative toll of working on an ever-shifting project became unsustainable.

Rising Costs


Development costs reportedly exceeded $100 million over the 10-year period. Combined with no clear path to completion, Riot's leadership made the difficult decision to cut losses and shut down the project.

June - November 2025

The Five-Month Silence

When Hytale seemed gone forever

Between June and November 2025, the Hytale community existed in a state of limbo. The official website remained online but frozen in time. Social media accounts went silent. Former developers moved to other projects, some publicly discussing their regret that the game never launched.

Community Preservation Efforts
Dedicated fans worked to preserve every piece of Hytale content: screenshots, blog posts, development videos, and community creations. Archivists created comprehensive databases documenting the game's 10-year development journey. In a sense, the community kept Hytale alive through memory and hope.

The Founders' Perspective
Simon Collins-Laflamme later revealed he was "heartbroken" by Riot's decision. As part of the acquisition agreement, he had stepped back from day-to-day development, trusting Riot to shepherd the vision to completion. When cancellation came, he found himself with no control over his creation - the IP belonged to Riot Games.

That changed in October 2025, when Riot's leadership reached out with an unexpected offer to sell back the IP.

Resurrection

How Hytale Came Back

The IP buyback and what it means

On November 17, 2025, Simon Collins-Laflamme announced he had negotiated with Riot Games to reacquire the Hytale IP. While financial terms weren't disclosed, industry insiders estimated the buyback between $20-30 million - a fraction of Riot's investment, but enough to return the project to its creator.

The Deal Included:

  • Full ownership of the Hytale IP, codebase, and all assets
  • Rights to the Hypixel Studios name and brand
  • Access to recruit former team members willing to rejoin
  • No ongoing royalties or revenue sharing with Riot
  • Clean break allowing independent development

The Four-Year-Old Build


Rather than continuing with Riot's troubled development, the team returned to a legacy build from four years earlier - before the scope expanded and technical challenges mounted. This "back to basics" approach enables the January launch timeline.

30+ Developers Returning


Over 30 former Hypixel Studios developers agreed to rejoin the project under Simon's leadership. These are the original team members who worked on Hytale before Riot's acquisition, bringing institutional knowledge and passion back to development.

10-Year Funding Commitment


Simon pledged 10 years of funding for Hytale's development, signaling long-term commitment beyond just Early Access. This financial runway allows the team to iterate based on community feedback without pressure for immediate profitability.

"Aggressively Low" Pricing


The Standard Edition is priced at just $19.99, which Simon describes as "aggressively low as possible." He explained: "The game is unfinished and runs on a build from over four years ago. Charging more didn't feel right."

Changes

What's Different Now

How the independent version differs from Riot's vision

Scope Reduction
The Early Access launch is significantly more focused than Riot's planned release. The team cut features to ensure a playable, stable experience:

  • Two game modes at launch (Exploration and Creative) instead of five planned modes
  • Windows-only initially (Mac/Linux coming Q1 2026, consoles long-term)
  • Using the older, more stable build instead of the troubled newer engine
  • Reduced initial zone count to ensure polish over breadth

Pricing Model Shift
Under Riot, Hytale was planned as a free-to-play game with cosmetic monetization. The independent release uses a premium buy-to-play model ($19.99/$34.99/$69.99 editions) to provide immediate revenue for the small independent studio.

Team Size
Hypixel Studios at its peak under Riot employed over 100 people. The reformed independent studio is leaner with approximately 30-40 core team members, focused on sustainable development rather than AAA-scale production.

Development Philosophy
The Riot era focused on shipping a complete, polished product that could compete with Minecraft at a AAA level. The independent era embraces Early Access iteration - launching with rough edges and improving based on community feedback over time.

This transparency about the game's unfinished state is a stark contrast to Riot's approach, with Simon repeatedly emphasizing: "If you don't feel comfortable pre-ordering, please don't."

Reception

The Community Response

How fans reacted to the resurrection

The Hytale community's reaction to the revival was overwhelmingly positive, though tempered with cautious optimism after the emotional rollercoaster of 2025.

Renewed Enthusiasm
Within 24 hours of the revival announcement, the Hytale subreddit gained 50,000 new subscribers. The announcement trailer garnered millions of views in its first week. Discord activity exploded as returning fans reconnected and newcomers joined the conversation.

Tempered Expectations
Many fans expressed cautious support, noting they'd wait to see the January launch before fully believing. The cancellation had taught them that nothing is guaranteed until it ships. Simon's transparency about the game's rough state helped manage expectations.

Server Community Planning
The revival energized the server hosting community. Creators and server owners who had shelved their plans in June began reactivating projects. Hosting providers like PebbleHost announced Hytale server hosting plans ready for launch day, giving server owners professional infrastructure.

Content Creator Return
YouTubers and streamers who had pivoted to other games after the cancellation returned to Hytale content. Many produced retrospective videos covering the cancellation and revival story, introducing the game to audiences who missed the 2018 announcement.

Insights

Lessons from the Hytale Saga

What game development can learn

Big Publishers Aren't Always the Answer


The Riot acquisition seemed like a dream scenario in 2020 - resources, expertise, financial security. Yet it led to scope creep, loss of vision, and cancellation. Independence has risks, but also creative freedom.

Scope Creep Is Real


Hytale grew from a Minecraft-like sandbox to a cross-platform live-service AAA title. While ambition drove innovation, it also drove costs and timelines into unsustainable territory. The focused Early Access approach may prove more successful.

Community Loyalty Endures


Despite 10 years of waiting, a cancellation, and uncertainty, the core Hytale community remained. That loyalty is rare and valuable. The founders recognized this by fighting to bring the game back.

It's Never Over Until It Ships


Hytale was dead. Then it wasn't. The cancellation seemed final, but the founders found a way to revive it. For developers and fans alike, this demonstrates that persistence and passion can overcome seemingly insurmountable obstacles.

Future

Looking Forward to January 13, 2026

What comes next for Hytale

As of now, Hytale is on track for its January 13, 2026 Early Access launch. The question "Is Hytale cancelled?" can finally be answered with a definitive no - it was cancelled, but now it's back and launching in Early Access.

Realistic Expectations
Simon has been remarkably transparent about what to expect: a rough, unfinished game running on a four-year-old build. There will be bugs, missing features, and rough edges. This isn't Riot's polished AAA vision - it's an honest Early Access release that will improve over time.

The January Launch
Early Access includes two game modes (Exploration and Creative), full modding support, and multiplayer servers from day one. The game is priced "as aggressively low as possible" at $19.99 Standard, $34.99 Supporter, and $69.99 Cursebreaker Founders Pack.

Hytale's story is one of ambition, heartbreak, and resilience. The game that was once the most-hyped voxel game in history got cancelled by a major publisher, only to be rescued by its passionate creator. Whether the January 13, 2026 launch succeeds remains to be seen, but the Hytale saga will remain one of gaming's most remarkable comeback stories.

Ready for Hytale's Launch?

PebbleHost's Hytale hosting will be available January 13, 2026 with enterprise hardware and 24/7 support

View Hosting Plans
FAQ

Frequently Asked Questions

Got questions? We've got answers

Is Hytale still cancelled?


No. Hytale was cancelled by Riot Games on June 23, 2025, but the original founder bought back the IP on November 17, 2025. The game launches in Early Access on January 13, 2026.

Why was Hytale cancelled?


Riot cancelled Hytale after 10+ years due to overly ambitious scope (PC to cross-platform live-service), technical challenges from engine rebuilds, developer burnout, and costs exceeding $100 million with no clear completion path.

What happened to Hytale after cancellation?


The original creator, Simon Collins-Laflamme, negotiated to buy back the Hytale IP from Riot Games. He reformed Hypixel Studios as an independent company with 30+ returning developers and 10-year funding commitment.

When did Hytale get uncancelled?


The revival was announced on November 17, 2025 - five months after the cancellation. Pre-purchase opens December 13, 2025, and Early Access launches January 13, 2026.

Will Hytale be different now that it's independent?


Yes. The launch is more focused: two game modes instead of five, Windows-only initially, using a four-year-old build, and priced at $19.99-$69.99 instead of free-to-play. It's an honest Early Access release, not Riot's AAA vision.

What features were cut from the original vision?


Some features are postponed to post-launch: additional game modes beyond Exploration/Creative, Mac/Linux support (coming Q1 2026), some planned zones, and the cross-platform live-service infrastructure Riot was building.

Can I pre-purchase Hytale now?


Pre-purchase opens December 13, 2025. Three editions: Standard ($19.99), Supporter ($34.99), and Cursebreaker Founders Pack ($69.99). All include full game access. See full details.

Will there be Hytale server hosting at launch?


Yes! PebbleHost offers Hytale server hosting ready for launch day with Budget and Premium tiers, 24/7 support, and custom control panels optimized for Hytale.