Dreamsettler is officially cancelled after 5 years in development, leaving fans disappointed and refund questions unresolved.
Sometimes, even with great promise and a loyal community behind them, some video games just never make it to the finish line. It’s a harsh reality especially now in a time when the games industry is going through major shifts. Studios are closing, projects are being shelved, and even beloved creators are struggling to keep going.
Today, we’ve lost one of those hopeful projects. Jay Tholen’s Dreamsettler, the sequel to Hypnospace Outlaw, has officially been cancelled.
Dreamsettler Officially Cancelled
Dreamsettler had been in development for five years and was eagerly awaited by fans of Jay’s previous work, the acclaimed internet sim Hypnospace Outlaw. With Dreamsettler set in an early 2000s internet landscape, a spiritual sequel in tone and format, it managed to build even more anticipation than its predecessor. Nostalgia, clever writing, and unique aesthetics had already earned the game a solid following.
But now that journey ends. Jay took to YouTube and briefly to the game’s Patreon page to officially announce the cancellation. He explained what led to the decision, and what he plans to do for supporters and the musicians involved in the project.
In short, it came down to money and reality. Jay explained that the project simply became unsustainable. Despite community support through Patreon, there wasn’t enough to keep development going. He added that he will personally refund some Patreon pledges, specifically the most recent ones, but can’t afford to reimburse the full five months of the campaign.
He did offer a possible alternative, concerned patrons can try requesting a refund through Patreon itself, which might honor the request, depending on timing and policies.
Dreamsettler (the follow up to Hypnospace Outlaw) has been cancelled https://t.co/JXFT2wTKaF pic.twitter.com/yvWK0eEyXl
— Wario64 (@Wario64) June 20, 2025
One moment in the vlog stood out more than anything else. Jay talked about how making Dreamsettler was hard not just financially, but creatively. Unlike Hypnospace Outlaw which came together through what he described as “organic” creativity and improvisation, Dreamsettler was built around a traditional design document and budget.
That structure meant to make things smoother, ended up stifling him. It’s a quietly devastating insight. When creative work is forced into strict production pipelines and milestone charts, it can lose its soul. Jay’s struggle is just one example of how independent creators often find themselves torn between doing things “the right way” and doing things their way.
Dreamsettler is gone and while the disappointment is deep, especially for fans who supported it emotionally and financially, this moment serves as a clear and painful snapshot of what happens when economic realities and creative ambition collide. For Jay and many other creators, the road ahead is still uncertain but hopefully, it’s still full of the same weird, wonderful ideas that made games like Hypnospace Outlaw so beloved in the first place.
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