Hypixel Studios was founded on October 18, 2018, as a spin-off from Hypixel Inc., the company behind the Hypixel Minecraft server, which was one of the most popular Minecraft servers in the world. The founding team, led by Simon Collins-Laflamme and Philippe Touchette, had extensive experience in managing large-scale multiplayer games and wanted to create their own standalone game.
The studio's first major project was Hytale, a block-based sandbox game inspired by Minecraft but with its own unique features and gameplay mechanics. The announcement trailer in 2018 generated enormous community interest, with millions of views and significant anticipation for the game's release.
In April 2020, Riot Games acquired Hypixel Studios, providing the development team with substantial resources and support. The acquisition was seen as a major validation of the team's vision and capabilities. Under Riot's ownership, the team expanded to over 65 employees and continued development on Hytale.
However, development proved challenging, with the team deciding to migrate to a new engine in 2024, a process expected to be completed by the end of that year. In June 2025, after more than 10 years of development, the team announced the cancellation of Hytale and began winding down operations, citing the project's overly ambitious scope.
In November 2025, in a remarkable comeback, the original team announced that Hytale was "saved" - they had repurchased the game from Riot Games and secured 10-year personal funding to continue development independently.