Heart Machine Lays Off Nearly All Staff After Publisher Cancels Unannounced Game

Heart Machine, the independent studio behind Hyper Light Drifter and Solar Ash, has laid off nearly its entire workforce after a publishing deal collapsed this week. Studio founder Alx Preston announced the news on LinkedIn, stating that the unnamed publisher withdrew funding for an unannounced game the studio was developing.

"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 said the studio will provide affected employees with support, including job placement assistance. He added: "Everyone will be provided with as much support as possible, including assisting with placement. If you know of any roles for extraordinarily talented, kind people, please reach out and we will coordinate."

The layoffs represent an existential threat to Heart Machine. Preston acknowledged the uncertainty ahead, saying: "Navigating an increasingly challenging industry has been extremely difficult, and I'm not sure yet what's next for Heart Machine to survive. However, we'll keep pushing to build a path while we are still here."

This is the studio's third major round of layoffs in under a year. Heart Machine cut staff in November 2024 as Hyper Light Breaker, a 3D multiplayer roguelike spinoff, approached early access launch. Two additional rounds followed in October 2025. The first came as Hyper Light Breaker's development concluded ahead of schedule, while the second occurred just weeks before the release of Possessor(s), a side-scrolling Metroidvania that launched to mixed reviews with a 71 on Metacritic.

One staff member affected by the October layoffs told reporters they did not expect to still be employed when Possessor(s) released. The cumulative effect of these cuts has severely constrained the studio's ability to recover or pivot to new projects.

Heart Machine has faced industry headwinds since launching Hyper Light Breaker. The multiplayer title was criticized for lacking the exploratory spirit and tight action design of the original Hyper Light Drifter, and development was abandoned while the game remained in early access without reaching a full 1.0 release.

Earlier this year, Heart Machine voluntarily recognized a union after 13 staff members formed a bargaining unit, underscoring workplace tensions during the period of successive layoffs.

The studio's situation reflects broader turbulence across the independent and mid-size game development sector. This year alone has seen closures at Night School Studio (Oxenfree), Ivy Road (Wanderstop), and Polyarc (Moss).