Heart Machine lays off nearly entire studio after publisher drops unannounced game

Heart Machine has laid off “nearly everyone” at the studio after a publisher stopped funding an unannounced game. Founder Alx Preston said the lost project had been providing key income for the Hyper Light Drifter developer, leaving the company without enough immediate funding to keep most of its remaining staff.

Preston announced the layoffs on September 16 and said Heart Machine’s future is now uncertain. The studio has not announced that it is closing, but Preston said he does not yet know what comes next or how Heart Machine will survive.

Heart Machine had been developing an unannounced title with financial backing from an unnamed publisher. According to Preston, the publisher decided this week that it would no longer move forward with the project.

The cancellation removed an important source of income at a time when Heart Machine had no other immediate prospects or funding ready to replace it. Preston said that situation forced the studio to lay off nearly all of its staff.

The publisher and details of the cancelled game have not been revealed. There is also no indication that the project was connected to Hyper Light Drifter, Solar Ash, or any of Heart Machine’s existing properties.

Preston said Heart Machine will provide as much help as possible to employees affected by the layoffs, including assistance with finding new positions. He also asked other studios and employers with available roles to get in touch so Heart Machine can help connect them with former staff.

The cuts leave only a small part of the studio in place. Preston did not say how many employees remain or what work they will continue, making the company’s immediate development plans unclear.

The latest layoffs follow an earlier round of cuts at Heart Machine in October 2025. At the time, the studio said it was reducing its workforce while winding down development of Hyper Light Breaker, its open-world roguelite that launched through Steam Early Access in January 2025.

Heart Machine said in December that Hyper Light Breaker would not receive further development for the time being. The game remains listed in Early Access, with no confirmed date for a full release.

The studio has also developed Solar Ash and Possessor(s) alongside its 2016 debut Hyper Light Drifter. Its website still lists those projects and Hyper Light Breaker among its games.

Preston stopped short of announcing Heart Machine’s closure and said the remaining team would continue trying to find a way forward. However, he acknowledged that the studio is now facing an uncertain future after losing the publishing deal and most of its workforce.

No replacement project, new publisher, or additional funding has been announced. Heart Machine’s next step will depend on whether the remaining studio can secure enough support to continue operating after the cancellation.