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Wizards of the Coast has seemingly canceled its AAA game project at the Skeleton Key studio. Very little is known about the game, but it was mostly likely in the horror genre as the studio describes itself as creating "thought-provoking moments of suspense and horror guiding players to have fun and face their fears."

Skeleton Key's audio director said he was laid off due to the game's cancelation. It's unclear how many other developers were impacted or if Skeleton Key will continue operations. GameSpot has reached out to Wizards of the Coast for comment.

In 2022, former BioWare veteran Christian Dailey joined Skeleton Key as its vice president and head of studio. He was best known for working on the Dragon Age franchise. He became executive producer of Dragon Age: The Veilguard after Mark Darrah left BioWare in 2020, but then handed off the role to Gary McKay after leaving to join Skeleton Key.

In 2023, Dailey posted a studio update for Skeleton Key's one-year anniversary, but didn't reveal any other details about the game itself aside from saying that it was still being worked on and that a physical office space was being built in Austin, TX. Since then, the studio has been silent.

Wizards of the Coast has already canceled projects in the past. Back in 2023, the company canceled at least five unannounced games.