The studio behind the critically acclaimed indie hit Hyper Light Drifter, Heart Machine, is grappling with potential closure after it laid off almost its entire workforce this week. Founder Alx Preston revealed the devastating news on LinkedIn, stating that the decision stemmed from a publisher pulling funding for an unannounced project the studio had been developing.
“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 added that navigating an increasingly difficult industry landscape has been extremely challenging, leaving him uncertain about how the company will survive.
Heart Machine originally self-published Hyper Light Drifter in 2016 to widespread critical praise. However, the studio shifted strategy for subsequent projects, partnering with external publishers for titles such as Solar Ash. The company had also announced Hyper Light Breaker, a sequel to its debut game, in 2022.
According to Preston, the team was attempting to manage multiple workstreams simultaneously, including development on Possessor(s), which released last year. This split focus likely strained resources, contributing to the cancellation of Hyper Light Breaker and earlier layoffs in October 2025. In March 2026, remaining employees at the studio moved to unionize following rounds of job cuts.
The current situation marks a tragic potential end for a developer that captured significant fan attention a decade ago. As of now, no immediate financial prospects or alternative funding sources have been identified to sustain operations.
Unionization attempts in March didn’t seem to help. This really shows how fragile small studios are when publishers cancel projects.
Truly heartbreaking news. Heart Machine created something magical, and this feels like a devastating loss for indie gaming forever.