Dreamsettler, the follow-up to early internet inspired browser game Hypnospace Outlaw, has been cancelled

L | A
Dreamsettler, the follow-up to early internet inspired browser game Hypnospace Outlaw, has been cancelled
"This is not a joke, and I'm sorry everyone"
dreamsettlers.webp
News by Oisin Kuhnke Contributor
Published on June 21, 2025

A little over three years since it was announced, Dreamsettler, the spiritual sequel to Hypnospace Outlaw, has been cancelled. Yesterday, lead developer Jay Tholen shared a video simply titled "Dreamsettler is canceled", where he explained some of his reasoning behind the decision. "This is not a joke, and I'm sorry everyone," Tholen wrote in the description of the video.

After noting that he "didn't want to make a video like this," the developer went on to explain that Dreamsettler is cancelled, going on to say that this means "it's not coming out, it won't be finished. This was a mutual decision between the publisher and I. They didn't pull support or anything, and they tried what they could to keep it going, but it's just time to stop it."


He also noted how it was bad timing given that a Patreon to help keep the project going was only launched earlier this year. There are also plans to try to release the part of the game that do exist, including the soundtrack from returning composer The Chowder Man, in some shape or form.

In a short version of events, Tholan explained that with Dreamsettler, they had a budget this time, so "we tried to plan the game from the top down more or less, where we knew all the beats that would happen, and what expensive things we could afford to film or have made for the game, and how much money we could afford to pay a programmer for X amount of time." In turn, there was a specific schedule to follow, and Tholen noted he has "never successfully made a game based on a design document."

He later said that he thinks he's a "hard person to work with. On a normal team, where there wasn't some guy who needed to work a weird way, they would have finished this game, and it would have been great, but I just couldn't get it going, you know? And it's too late. Hopefully you all stick around, and don't hate my guts, and hopefully we'll talk soon."

In the years since announcing Dreamsettlers, Tholen did also work on Slayer X: Terminal Aftermath: Vengeance of the Slayer, a boomer shooter spin-off made by the in-world Hypnospace Outlaw character Zane - former RPS staffer Liam reviewed it and had some positive but mixed feelings on it. Co-founder John Walker reviewed Hypnospace Outlaw back in the day too, coming away from it quite enamoured.
 
In other words, he couldn't keep to a time table and work when he needed to in a way he was supposed to?
The first game was originally suppost to be just a 2d car game where you checked other cars profiles and ballooned into a full faux internet browser, he clearly has an issue with feature creep.
 
I guess if it's budget issues then it's fucked but I'm still confused on how this all happened.
Wasn't Slayers X a massive success?
 
The first game was originally suppost to be just a 2d car game where you checked other cars profiles and ballooned into a full faux internet browser, he clearly has an issue with feature creep.
As do pretty much every indie and industry developer out there. There are extremely few devs who can actually keep themselves in check, and its the reason why the usual outcome of the corporate level of a studio letting the devs just cook for years is "Nothing is finished and we need a few more years".

And I'm speaking from the inside, feature creep is something I constantly have to face and reassess even in smaller projects. Its way too tempting to think a feature would be "better" with a dozen things and end up so off base that to make it work you need another further dozen things to back up those things and now you're months of work away from where you planned to be with a feature set that doesn't even align anymore with the first feature that started it all. Don't let perfection be the enemy of good enough, and all that.
 
I think its less intentional scamming and more of incompetence.
Sure, I get the incompetence excuse, but at the same time he must have known well before now that he was never going to make the damn thing, so we have to wonder how much money he got before deciding to publicly announce it. Again, the fans only get the most recent contribution back, seems like a lot of bullshit to me. to
 
I believe the real story is that the publisher was going to fund Dreamsettler, but Jay thought he could release Slayers X shortly after the keynote was delivered all of those years ago. He squandered so much money in that game and it didn’t sell well at all. It was OK for what it’s worth, and the soundtrack was cool. I think if it released shortly after that demo, it probably would have had more success.

Also, his new team is obsessed with designing “tools”, but not an actual game. He doesn’t seem like a strong team lead and lets people do whatever they want. Seriously, how many autists are going to use the page builder beyond what’s required for the scope of the game. I think one of the developers played the Welcome to the Game series and wanted to further replicate that.
 
I can sort of relate. It's very difficult to follow through on a creative project when you're in charge of it and you own the risk. Everyone thinks they want that opportunity, but very few people are actually built for it. This guy unfortunately found out that he wasn't built for it.
 
In other words, he couldn't keep to a time table and work when he needed to in a way he was supposed to?
Pretty much. He basically got lucky with Hypnospace. The publisher kept him on a very tight budget and he worked within it and made a game that sold waaaay better than expected.

From what I was reading on a few sites, this time they gave him a bigger budget... but he was chewing through it at an insane speed and not meeting any deadlines or progress checkpoints. He'd been given a few warnings about this, which he ignored.

He was spending hardly any time working on the ACTUAL GAME part of it. He was spending all the time and money on stuff like the Website Builder, a bunch of minigame-esque things, and commissioning a ton of stuff for in-game media.

To quote Tholen himself:
"there's no actual 'game' because I never started making the fake internet or puzzles or characters or anything outside of template pages, but there are a bunch of super neat minigames and systems and excellent music. we'll figure something out"
 
Here's an interesting thing that I noticed which in hindsight was a much bigger red flag than I assumed at the time.
In one of the first patreon streams, he mentioned that he didn't even like 2000's web design or aesthetics.
Kind-of a big deal when you're making a game set in the 2000's but I assumed that - since all the currently released content looked good - the artists he'd assigned to the project could continue to work their magic and smooth things over.
 
Back