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Heart Machine Lays Off Nearly All Staff After Publisher Withdraws Funding

3 outlets9/17/2026

The short version

Indie studio Heart Machine has laid off nearly all its developers after a publisher withdrew funding for its unannounced next project, leaving the studio's future uncertain. Founder Alx Preston called the decision 'devastating' and acknowledged the studio may not survive.

via GamesRadar+

Heart Machine, known for the Hyper Light Drifter series, has laid off 'nearly everyone' at the studio following the collapse of a publishing deal for an unannounced game. Founder Alx Preston announced the news on LinkedIn, stating the publisher's withdrawal of funding left the studio without 'any other immediate prospects or other funds.' The decision came after the studio's previous games, including Hyper Light Breaker and Possessor(s), faced mixed reception and financial challenges.

The studio's 2025 game Possessor(s) received 'mostly positive' Steam reviews but failed to stabilize Heart Machine's finances. Previous layoffs occurred after the troubled early access release of Hyper Light Breaker, which had 'Very Negative' Steam reviews. A 2024 attempt to pivot to Patreon was short-lived, and the studio has struggled with industry pressures such as funding shifts and corporate consolidation.

Preston emphasized the studio will 'keep pushing to build a path' but admitted, 'Right now, I'm not sure yet how or if Heart Machine survives.' Laid-off employees will receive support, including assistance with job placement. Preston appealed for opportunities for 'extraordinarily talented, kind people,' while thanking fans and past contributors for their support.

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3 outlets · 3 takes

How each outlet is covering this story. Go straight to the one with the angle you want — we send you to the source.

  • GamesRadar+
    Publisher deal collapse

    Heart Machine laid off nearly all staff after a publisher withdrew funding for an unannounced project, leaving the studio's future uncertain.

    Read on GamesRadar+ →publisher deal details
  • PC Gamer
    Unannounced project failure

    The collapse of an unnamed publisher's funding for Heart Machine's unannounced project led to mass layoffs, with the studio's survival in question.

    Read on PC Gamer →unannounced project details
  • Kotaku
    Studio closure risk

    Heart Machine faces potential closure after a publisher withdrew support, compounded by previous game releases that failed to stabilize the studio.

    Read on Kotaku →studio's future outlook
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