Hyper Light Drifter studio faces closure after layoffs

Heart Machine laid off nearly its entire team after a publisher pulled funding for an unannounced game.

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Sep 16, 2026

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Hyper Light Drifter studio faces closure after layoffs

Heart Machine laid off nearly its entire team after a publisher pulled funding for an unannounced game.

In brief

Heart Machine laid off nearly its entire team after a publisher pulled funding for an unannounced game. Even acclaimed indie studios struggle to survive when a single funding source disappears, especially after stretching resources across multiple projects. Originally reported by Engadget.

Publisher pulls plug on Heart Machine

Heart Machine founder Alx Preston announced the studio lost its primary funding source this week when a publisher cancelled an unannounced game the team was 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.”

Nearly everyone laid off

Without the publisher's funding and no other immediate income sources, Heart Machine had to let go of nearly its entire workforce.

“It's devastating.”

From indie success to stretched thin

From indie success to stretched thin

Heart Machine created Hyper Light Drifter in 2016 as an independent success, but later juggled multiple projects including Solar Ash, Hyper Light Breaker, and Possessor(s) while working with external publishers.

Hyper Light Breaker cancelled

Heart Machine ended development on Hyper Light Breaker and conducted layoffs in October 2025, signaling financial trouble before this week's collapse.

Workers unionized just months ago

Some remaining Heart Machine employees voted to unionize in March 2026, just months before the studio faced potential closure.

Industry challenges mount for indies

Industry challenges mount for indies

Preston acknowledged the gaming industry has become increasingly difficult to navigate, leaving Heart Machine uncertain about its survival and future direction.

“Navigating an increasingly challenging industry has been extremely difficult, and I'm not sure yet what's next for Heart Machine to survive.”

In short

Even acclaimed indie studios struggle to survive when a single funding source disappears, especially after stretching resources across multiple projects.

Read the original on Engadget

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