Australia captain Michael Clarke, who was commended for his efforts in supporting the Hughes family since Tuesday's incident, read out a brief statement on behalf of parents Greg and Virginia and siblings Jason and Megan Hughes.
"We're devastated by loss of our much-loved son and brother Phillip," Clarke read.
"It's been very a difficult few days and we appreciate all the support we have received from family, friends, players, Cricket Australia and the general public.
"Cricket was Phillip's life and we as family share that love of game with him.
"We would like to thank all medical and nursing staff at St Vincent's Hospital and Cricket NSW medical staff for their great efforts with Phillip.
"We love you."
Clarke bowed his head momentarily to compose himself before exiting.
Hughes was struck on the head while batting for South Australia during a Sheffield Shield game at the SCG on Tuesday, and underwent emergency surgery shortly after being rushed to St Vincent's Hospital in Sydney.
He had since been in an induced coma in the hospital’s intensive care unit.
Australia captain Michael Clarke, a long-time teammate and friend, was among the many from within Australian cricket to visit Hughes and his family at the hospital, offering support and well wishes.
The Australian team was due to assemble in Brisbane this weekend for next Thursday's first Test against India. Instead players from around the country flew into Sydney as the cricket family drew strength from the company of one another.
Hughes, who hailed from Macksville on the New South Wales mid north coast, was struck by a ball below the helmet while attempting to play a hook shot to a short-pitched delivery at 2.23pm Tuesday, the opening day of his team's match against NSW.
He was 63 not out at the time and pushing his case for a recall to the Australian Test team.