Derry gaming company begins 'winding down' process

One of Northern Ireland's highest-profile gaming companies has announced it is winding down its operations.

Founded in 2018 in Londonderry, Hypixel Studios first project was to be the block-based fantasy game Hytale.

The Derry company was acquired in 2020 by Riot Games, one of the world's biggest game publishers.

In a statement, Hypixel co-founder Aaron Donaghey said the company is ending Hytale's development and the winding down of Hypixel Studios is under way.

"This is not the outcome any of us - at Hypixel or at Riot – wanted," Mr Donaghey said.

"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," he added.

The team of about 100 game developers – the majority of which are internationally based remote workers – will be "supported with generous severance and resources" by parent company Riot Games, Mr Donaghey said.

Mr Donaghey said calling time on Hytale "is a painful decision".

"We still believe in Hytale," Mr Donaghey said.

"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."

A YouTube trailer for the now abandoned game has been watched over 60 million times.

He said the Hypixel server on Minecraft – which has had more than 18m visitors - is unaffected by the winding down of the studio.

Game development, Mr Donaghey added, is "brutally hard".

Professor Kevin Curran from Ulster University's school of computing, told BBC Radio Foyle that the gaming industry globally is seemingly affected by "a post pandemic correction".

During Covid-19, he said, there had been a massive boom in "user engagement and revenue for games".

"Games are incredibly complex and expensive to develop and can take five to seven years to develop a game.

"A lot of gaming companies are restructuring and cutting staff and have been for a good while, " Prof Curran said.

Mr Donaghy said Hypixel wanted to thank the people of Derry and Northern Ireland for their "warmth, hospitality and spirit".

"Despite the studio closing operations, we can only hope there is a lasting impact from our time here," Mr Donaghey said.

He said Hypixel wished all fellow members of the games industry continued success and thanks Ulster University , NI Screen and learning charity Kippie for "their cooperation and support over the years".