Hyper Light Drifter Studio Lays Off ‘Nearly Everyone’ After Publisher Pulls Out
Heart Machine faces an uncertain future after a publisher pulled funding from an unannounced game, forcing layoffs across nearly the entire studio.
Key Takeaways
- Heart Machine laid off nearly its entire staff after a publisher canceled funding for an unannounced project.
- Founder Alx Preston stated the studio’s future is uncertain but he is actively working to help affected developers find new roles.
- The creator of Hyper Light Drifter and Possessor(s) had already endured two previous rounds of layoffs in late 2025.
Another studio with several highly acclaimed titles under its belt is facing an uncertain future after a publisher pulled funding from an unannounced project. Heart Machine founder Alx Preston has revealed that the decision has forced the studio to lay off “nearly everyone” while the team was still working on the game.
Heart Machine Loses Publisher Funding and Lays Off Most of Its Staff
In a post on his LinkedIn page, Alx Preston shared the difficult news that Heart Machine had been working on an unannounced title funded by a publisher, but that the publisher decided this week that it would no longer move forward with the project. Preston did not provide an explanation for why the publisher pulled out.
Without that funding and with no other immediate prospects or sources of income available, the studio was forced to let go of “nearly everyone” on its team. Preston described the situation as devastating and said the studio’s future is now uncertain.
Preston also said Heart Machine will provide the affected employees with as much support as possible including helping them find new positions. He called on other studios and companies with available roles to reach out, offering to help connect them with the talented developers now looking for work.
The founder ended his message by acknowledging how difficult the current game industry has become and admitted that he isn’t sure what comes next for Heart Machine or whether the studio will survive. At the same time, he said the team would continue looking for a path forward while Heart Machine remains in operation.
The latest layoffs also come after Heart Machine had already gone through significant staff reductions. The studio reportedly carried out two rounds of layoffs in October 2025.
Heart Machine founder Alx Preston – "nearly everyone at the studio had to be laid off" after a publisher is no longer moving forward with an unannounced game
— Wario64 (@Wario64) September 16, 2026
"Right now, I'm not sure yet how or if Heart Machine survives"https://t.co/bKKzC10Q0y pic.twitter.com/FJJN0Bj2Ad
Heart Machine is best known for Hyper Light Drifter, the acclaimed 2016 action RPG that established the studio as a notable name in the indie scene. The developer later expanded its catalog with Solar Ash, Hyper Light Breaker, and Possessor(s), its most recent release.
Hyper Light Drifter remains the studio’s most recognized title, while Solar Ash took the developer’s distinctive visual style into a 3D action-platforming experience. Hyper Light Breaker later revisited the Hyper Light universe with a different gameplay structure and entered Early Access, while Possessor(s) arrived in 2025 as a 2D action game.
The identity of the canceled project remains unknown, and there is currently no indication of what the game was or how far development had progressed before the publisher withdrew its support.
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