Summary
- Wizards of the Coast confirmed that it has canceled Skeleton Key’s unannounced big-budget game.
- The move wasn’t an end to the studio, but merely a strategic effort to refocus its resources on its remaining project—an unannounced game led by former Dragon Age: The Veilguard director Corinne Busche.
- Skeleton Key’s recently canceled game was a AAA horror title that had been in the works since around 2022.
It has been confirmed by Hasbro’s subsidiary, Wizards of the Coast, that recent rumors about a large-budget game cancellation led by their Skeleton Key studio are true. However, they also stated that initial reports were not entirely accurate. For now, it seems that the Texas-based branch of Wizards of the Coast is not facing closure despite having one of its projects terminated.
Established in 2022 and located in Austin, Texas, Skeleton Key currently boasts approximately 50 employees as per LinkedIn data updated in March 2025. Initially launched under Hasbro’s broader gaming initiative, the studio initially planned a AAA project which unfortunately got canceled, as confirmed by an ex-employee in their February 2025 social media post.
As a gamer, I recently heard some news that initially seemed concerning – it was reported that Skeleton Key’s project was canceled. However, after listening to Dan Ayoub, SVP of Wizards of the Coast Digital Games, in an interview with Stephen Totilo from Game File, I learned there might be more to the story. Contrary to the initial reports, Skeleton Key isn’t shutting down; instead, they’re reallocating their resources. It appears that the studio was working on two projects, and they’ve decided to concentrate their efforts on one of them. So, while it may seem like a game is being shelved, in reality, the team is just refocusing their energy elsewhere.
Skeleton Key Still Has a Game in the Works
Ayoub also discussed the earlier rumor about Skeleton Key undergoing layoffs due to its recent cancellation. He verified that the layoff did indeed occur, but he made it clear that most of the team members working on the cancelled game were instead assigned to a different project. Such staff reallocation is typical within the gaming industry when dealing with game cancellations.
As a gamer, I’d put it like this: “At the game studio where I work, there were two games in the works, but we decided to channel all our efforts into completing the other one.
Skeleton Key’s Remaining Game Is Led by Dragon Age: The Veilguard Director
The game that Skeleton Key Studios had been developing secretly was a horror title, starting its production around the time the studio was established in 2022. Information about their other project remains unknown, but it is known to be helmed by Corinne Busche, who previously directed Dragon Age: The Veilguard at BioWare before leaving in January 2025 and joining Skeleton Key shortly after that.
Due to recent changes in direction for the project and Skeleton Key Studio’s relatively small size within the AAA industry, it appears unlikely that their current game will make it to market any time soon. Moving forward, the next game from Hasbro to be released will be Archetype’s “Exodus”, an action role-playing game in a sci-fi setting. Originally announced in December 2023,
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2025-03-26 15:54