Heart Machine Lays Off Nearly Everyone After Publisher Pulls Funding

Heart Machine layoffs hit the Hyper Light Drifter studio on September 16, 2026, when founder Alx Preston said an unnamed publisher pulled funding for an unannounced game and nearly everyone at the studio had to be laid off.

What happened at Heart Machine

Preston announced the cuts on LinkedIn on September 16, according to reports from PC Gamer, Game Informer, Rock Paper Shotgun and Gaming.net. The studio had been working on an unannounced title funded by a publisher, and that publisher decided this week to no longer move forward with it.

"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 wrote. He said everyone affected will be provided with as much support as possible, including assistance with placement, and asked anyone aware of open roles to reach out so the studio can coordinate.

Preston did not name the publisher or the project, and did not share a headcount. The phrasing across outlets was consistent - "nearly everyone" - which indicates a near-total reduction rather than a partial team trim. He also thanked staff, community and fans, and acknowledged the broader strain on independent studios.

“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.”

— Alx Preston via LinkedIn, as reported by PC Gamer and Game Informer (Sept. 16, 2026)

A rough stretch: Hyper Light Breaker to Possessor(s)

The Heart Machine layoffs follow a difficult two-year run for the Los Angeles studio, even as it shipped two new games. Heart Machine first broke out in 2016 with Hyper Light Drifter, a self-published action RPG funded by a Kickstarter that raised over $600,000, followed by Solar Ash in 2021.

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More recently, the studio's releases faced headwinds. Hyper Light Breaker, an open-world co-op adventure set in the Hyper Light universe, entered Steam Early Access on January 14, 2025, according to Gaming.net. Coverage at the time noted mixed reception, and Game Informer reported that after layoffs in October 2025, development on Breaker ended without a full 1.0 release.

Possessor(s), a fast-paced side-scrolling action game following Luca and her counterpart through a flooded, quarantined city, arrived soon after. Game Informer noted it launched November 11, 2025 for PlayStation 5 and PC, with a Switch 2 version on April 29, 2026, and currently holds a 71 on Metacritic. Gaming.net described its Steam reception as Mostly Positive. Game Informer also reported that its launch was preceded by a second wave of layoffs in October 2025, making this week's cuts the third major reduction in under a year.

For players, that context matters. Breaker remains in early access without a planned 1.0, and Possessor(s) is the studio's most recent shipped title. Neither game's store availability has been reported as affected by this week's layoffs, but the loss of nearly all staff raises clear questions about ongoing support, patching and future content - none of which the studio has detailed yet.

Union recognition and industry pressure

The layoffs also come months after Heart Machine workers formed a union. Gaming.net reported that in March 2026 the studio voluntarily recognized a union with CWA Local 9003, covering workers at the Los Angeles-based studio with team members distributed globally.

© gameinformer.com

The outlet did not report details on how the union agreement, if any, interacts with this week's reductions, and Preston's statement did not address union status. For now, what is known is that the bargaining unit was recognized earlier this year, and the studio's own description emphasizes its focus on building adventures with engaging stories in vibrant worlds.

The broader backdrop is an unstable year for independent studios. Game Informer noted that in 2026 alone, Night School Studio, Ivy Road and Polyarc have shut down, underscoring how funding gaps and publisher shifts have hit smaller teams hard. Rock Paper Shotgun similarly framed the cuts as part of a torrid stretch for the industry, where both large publishers and small indies have continued to reduce staff.

What's next for the studio

Preston said he is not sure yet what is next for Heart Machine to survive, but that the studio will keep pushing to build a path while it is still here. He did not announce a closure, a sale, or a new publisher deal, and did not outline a timeline for any next steps.

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In the near term, his stated priority is placement support for departing staff. He asked employers with open roles to reach out so the studio can coordinate introductions, and thanked contributors and fans for their support through what he described as an increasingly challenging industry.

For players following Heart Machine layoffs, the practical takeaway is uncertainty. The unannounced publisher-funded project is no longer moving forward, according to Preston, and the studio's capacity to maintain existing games or start new ones is sharply reduced. Until Heart Machine shares a formal update on its structure and plans, the safest read is that the studio persists in name but with minimal staff and no confirmed funding.