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Heart Machine Loses Nearly All Staff After Publisher Deal Collapses

By Tech Desk · 2026-09-16 · 2 min read
A dimly lit office desk with a closed laptop and a single empty chair
Illustration: Tradingbird

The developer behind Hyper Light Drifter has disbanded its team after a funding agreement fell through, leaving the studio's future uncertain.

Heart Machine, the independent studio behind the Hyper Light series, has laid off nearly its entire workforce. This sudden reduction in staff follows the collapse of a funding deal with an unnamed publisher for an unannounced project. The move leaves the studio without the financial backing required to continue operations or develop new games.

Studio founder Alx Preston announced the news on professional social media, describing the situation as devastating. He confirmed that the publisher withdrew support for the upcoming title, which removed the primary source of income for the team. Without this key funding, Preston stated that there were no other immediate prospects or reserves sufficient to keep the company afloat.

A history of development setbacks

This latest event is not an isolated incident for the team. Heart Machine achieved significant critical and commercial success with its debut title, Hyper Light Drifter, in 2016. However, the studio faced growing difficulties in subsequent years, including the cancellation of Hyper Light Breaker during its early access phase and a previous round of layoffs.

The studio’s most recent release, Possessor(s), received mixed feedback from players and critics. While it earned mostly positive reviews on digital storefronts, it did not generate the volume of sales or acclaim needed to sustain the team’s long-term operations. As reported by gaming industry news outlet GN auto tech/gaming, these recurring financial strains have made the studio highly vulnerable to external funding changes.

Uncertainty about the studio's survival

Preston acknowledged the severe uncertainty facing the organization. He stated that while he is attempting to find a path forward, he is not sure what the next steps are for the studio to survive. The lack of a clear business model or ongoing revenue stream has left the team in a precarious position.

Despite the bleak outlook, the founder expressed a desire to support his former colleagues. He pledged to assist the laid-off staff with job placement and encouraged others in the industry to reach out if they know of suitable roles for the talented individuals who were let go. The studio is currently in a state of limbo, with no immediate announcements regarding new projects or restructuring.

Based on reporting by PC Gamer, compiled by the Tradingbird desk.

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