Heart Machine, the development studio acclaimed for its work on Hyper Light Drifter and Possessors, is facing significant financial hardship after a publisher rescinded funding for an unannounced project. The studio has consequently been forced to lay off nearly all of its staff.
In a LinkedIn post on September 16, 2026, Heart Machine founder Alx Preston revealed that the publisher involved "decided to no longer move forward with it." Without this crucial income stream, the studio was compelled to make drastic cuts. Preston described the situation as "devastating" but assured that all affected individuals would receive "as much support as possible, including assisting with placement."
Preston expressed uncertainty regarding the studio's future survival but indicated that the remaining team would "keep pushing to build a path." He extended gratitude to the employees and the community for their contributions and support.
Heart Machine's most recent release, the search-action game Possessors, launched in November 2025 to generally positive reviews. The studio's breakout success, Hyper Light Drifter, a stylized 2D action game, has become a cult classic over the past decade, lauded for its visuals and gameplay.
This news follows a trend of significant layoffs in the game industry. Earlier this year, Double Fine laid off approximately 25% of its staff after transitioning to independent status following Xbox's restructuring. More recently, employees at Build a Rocket Boy announced layoffs, raising concerns about the studio's future after a troubled launch of its title Mindseye.