Hypixel Studios has ceased development on its sandbox game, Hytale, due to insufficient financial support and challenges in aligning its vision with the evolving sandbox gaming landscape. The studio, founded in 2016 and acquired by Riot Games in 2020, faced difficulties despite a major overhaul of the game engine. Riot Games assisted in seeking additional investors but ultimately decided to halt the project, providing support to the team during the transition. The existing Hypixel Minecraft server will continue to operate independently. The announcement comes amid significant layoffs in the gaming industry, with over 10,500 jobs lost in 2023 and projections of an additional 14,600 in 2024.