Heart Machine has laid off nearly its entire remaining staff after a publisher decided to stop funding an unannounced game, leaving the future of the Hyper Light Drifter developer uncertain. Founder and creative director Alx Preston announced the cuts on September 16, saying the canceled project had provided crucial income for the studio. Preston said he does not currently know whether Heart Machine will survive.
According to Preston, Heart Machine had been developing the unannounced title with financial backing from an external publisher. That publisher decided this week not to continue with the project, and Heart Machine had no other immediate source of funding capable of sustaining the team. Preston said the resulting financial situation forced the studio to lay off “nearly everyone,” though he did not provide an exact number of affected employees or identify the publisher involved.
Heart Machine plans to provide as much assistance as it can to departing staff, including helping them find new positions. Preston also asked other studios and employers with available roles to get in contact so Heart Machine can help connect them with affected developers. He described the situation as devastating and thanked the people who have contributed to the studio’s games over the years.
The layoffs follow an extended period of instability at Heart Machine. The Los Angeles-based independent developer had already reduced its workforce in November 2024, before another major round of cuts arrived in October 2025 as development on Hyper Light Breaker wound down. Several additional employees reported being laid off later that same month, leaving the company operating with a considerably smaller team.
Hyper Light Breaker entered Steam Early Access in January 2025 as a 3D roguelite set in the universe of Heart Machine’s acclaimed 2016 game Hyper Light Drifter. After months of updates, the studio announced in October 2025 that it would wind down development, citing funding shifts, corporate consolidation and the difficult environment facing independent studios. The planned full version was ultimately not completed in the form originally envisioned.
Heart Machine continued operating after those reductions and released Possessor(s), its side-scrolling action game published by Devolver Digital, in November 2025 for PlayStation 5 and PC. A Nintendo Switch 2 version followed in April 2026. The canceled project disclosed by Preston this week was separate from those already announced games, and details including its genre, publisher and development stage have not been revealed.
The studio’s employees also organized during this period of uncertainty. In March 2026, the Communications Workers of America announced that Heart Machine had voluntarily recognized a wall-to-wall union representing 13 frontline employees after a supermajority requested recognition. That figure offered a glimpse at how substantially the developer had already contracted following its previous rounds of layoffs, although it should not be treated as the exact size of the workforce immediately before the latest cuts.
Heart Machine’s situation adds to another difficult period for game developers dealing with projects being canceled when financing disappears. FuturLab recently canceled an unannounced project after projected costs exceeded expected returns, while other studios have faced much larger restructuring efforts after publishers changed their development plans. The consequences can be especially severe for independent teams that depend on milestone payments from publishing partners to maintain payroll during production.
The latest announcement is particularly serious because Preston openly questioned whether Heart Machine itself can continue. He said the company will keep trying to find a path forward, but did not announce another funded project, investment agreement or restructuring plan that would secure its immediate future. That distinguishes the situation from a conventional round of layoffs intended simply to reduce operating costs.
Heart Machine was founded in 2013 and established its reputation with Hyper Light Drifter before developing Solar Ash, Hyper Light Breaker and Possessor(s). The studio became known for distinctive visual direction and for moving between different genres rather than repeatedly producing direct sequels. Its current crisis now leaves one of the better-known independent developers of the past decade with an uncertain future.
For now, the unannounced publisher-funded project has been canceled, nearly all remaining employees have been laid off, and Heart Machine has not confirmed what will happen next. Preston says the studio will continue looking for a way forward, but acknowledged that its survival is no longer assured.
