It has been decided by Microsoft and Team Dakota, the team that brought us Project Spark, that they will discontinue support for the game on the 13th May 2016.
For existing users of “Project Spark,” online services will be unavailable after 12th August 2016, This means players will no longer be able to download user-generated content or upload their own creations. If you want to access user-generated content offline, you will need to download this content prior to 8/12/16. If you want to play User-Created content after this date you need to download them and you can play them offline as they will be stored locally.
Even though this was a tough decision for both parties, since Project Spark was released many developers have moved onto other projects, thankfully nobody has lost employment due to the decision.
However for players who purchased and redeemed the “Project Spark Starter Kit” sold in retail outlets, they will receive a credit to their Microsoft account. If you purchased and redeemed the code inside a retail copy of “Project Spark” after 5th October 2015, and before today, you will receive a credit that can be used to purchase content in the Xbox or Windows store. Credits will be granted automatically to eligible customers. For more information, please visit http://xbox.com/spark.
