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.
Hasbro subsidiary Wizards of the Coast has confirmed the recent rumor that it canceled a big-budget game led by its studio Skeleton Key, but while insisting that the original report didn’t tell the full story. As things stand right now, it would appear that Wizards of the Coast’s Texas-based subsidiary isn’t in danger of closure in spite of having one of its projects canceled.
Skeleton Key was founded in 2022 and is based out of Austin. According to LinkedIn data, it employs around 50 staffers as of March 2025. While it was initially established as part of Hasbro’s big gaming push, the studio’s first AAA project ended up being canceled, which was claimed by a former staffer in a February 2025 social media post.
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This cancelation has indeed taken place, according to Wizards of the Coast Digital Games SVP Dan Ayoub, who said as much in a recent interview with Game File’s Stephen Totilo. However, the industry veteran clarified that the Austin-based studio is still operational and that the original reporting on Skeleton Key’s game cancelation didn’t tell the whole story. Rather than shelving the company’s sole project, Wizards of the Coast opted to pool its resources. “There were basically two projects in development at the studio and we refocused the team on the other one,” the executive explained.
Skeleton Key Still Has a Game in the Works
Ayoub also addressed the previously reported claim that Skeleton Key faced layoffs following the recent cancellation. He confirmed it was true but clarified that the “vast majority” of staffers working on the scrapped game were reassigned to another project. Talent reshuffling of this sort is standard industry practice when dealing with game cancelations.
There were basically two projects in development at the studio and we refocused the team on the other one.
Skeleton Key’s Remaining Game Is Led by Dragon Age: The Veilguard Director
Skeleton Key’s canceled game was an unannounced horror title, which had been in the works since around 2022, the year the studio itself was founded. Details about its remaining project are still unconfirmed, but it is known to be led by Corinne Busche, the former director of Dragon Age: The Veilguard, who left BioWare in January 2025 and joined Skeleton Key shortly thereafter.
Given the recent project refocusing and the fact that Skeleton Key is still fairly small for a AAA studio, the chances of its remaining game hitting the market anytime soon seem slim. In terms of upcoming releases, the next Hasbro game to materialize will be Archetype’s Exodus. Originally announced in December 2023, the sci-fi ARPG is still on course for a 2026 release, Ayoub said. Hasbro also presently has several other titles in the works, including Baldur’s Gate 4 and a new Dungeons and Dragons game from Canada-based Invoke Studios, formerly known as Tuque Games.
