Heart Machine lays off nearly all staff after publisher pulls funding
Heart Machine founder Alx Preston announced that a publisher backing an unannounced project decided to abandon it this week, leaving the studio without its primary funding source. With no other immediate financial options, the Hyper Light Drifter developer laid off nearly its entire team, following earlier cuts tied to the cancellation of Hyper Light Breaker in October 2025.
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The collapse illustrates how dependent even acclaimed indie studios have become on publisher financing, leaving them vulnerable to sudden funding withdrawals. It also comes just months after Heart Machine's remaining employees voted to unionize, raising questions about labor protections amid studio closures across the games industry.
- Heart Machine laid off nearly all staff after a publisher canceled funding for an unannounced game
- This follows earlier layoffs in October 2025 tied to the cancellation of Hyper Light Breaker
- Founder Alx Preston says the studio's survival is now uncertain
Hyper Light Drifter (Nintendo Switch) — With Heart Machine's future uncertain, now's a great time to revisit the studio's acclaimed debut. Hyper Light Drifter's stunning pixel art and haunting atmosphere show exactly why this small team earned such a passionate following. Supporting the game is a nice way to appreciate the developers' work during a tough time.
See Hyper Light Drifter (Nintendo Switch) on Amazon → Affiliate link — we may earn a commission on purchases, at no extra cost to you. Product picked by AI based on this article; it is not a tested recommendation.Source: engadget.com — Anna Washenko, 2026-09-16
Published there as: “Hyper Light Drifter dev at risk of closing after laying off 'nearly everyone'”
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