Studio Behind Hyper Light Drifter In Peril After Publisher Withdraws Funding for Unannounced Project

Heart Machine, the acclaimed indie studio behind the Hyper Light franchise and other critically acclaimed pixel art titles, has laid off nearly its entire workforce following the collapse of a publishing deal. Studio founder Alx Preston announced the mass layoffs on LinkedIn on September 16, 2026, revealing that a publisher had withdrawn funding for an unannounced project the studio had been developing.

According to Preston, the unnamed publisher “decided to no longer move forward” with the project, and without this key source of income, the studio had no choice but to lay off “nearly everyone.” Preston described the situation as “devastating” and expressed uncertainty about the studio’s future, stating he was “not sure yet what’s next for Heart Machine to survive.”

Heart Machine is best known for critically acclaimed titles including Hyper Light Drifter, Hyper Light Breaker, Solar Ash, and Possessor(s). The studio has previously experienced workforce reductions in 2024. This latest crisis leaves the studio’s future in serious doubt, with Preston providing few details about potential recovery plans or alternative funding sources.

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