Heart Machine lays off nearly all staff after publisher cancels funding

Heart Machine, the indie studio behind the critically acclaimed game Hyper Light Drifter, has laid off nearly all of its staff after a publisher canceled funding for an unannounced project. Studio founder Alx Preston announced the news in a LinkedIn post on September 17, 2026, stating the decision has left the studio's future in doubt. "We had been working on an unannounced title, funded by a publisher. This week, they decided to no longer move forward with it," Preston wrote. "Without this key income for the studio, any other immediate prospects or other funds, nearly everyone at the studio had to be laid off. It's devastating." Preston expressed uncertainty about the studio's survival, noting that navigating the video game industry has become "extremely difficult." He added that the studio would provide support to laid-off employees, including assistance with job placement. The layoffs mark the latest in a series of setbacks for Heart Machine. The studio previously reduced its workforce in November 2024 as it prepared to launch Hyper Light Breaker into early access.