Hyper Light Drifter Studio Heart Machine Lays Off Nearly All Staff After Publisher Pulls Out

Indie studio Heart Machine, which released Hyper Light Drifter, has laid off nearly all of its staff. The studio was working on an unannounced game funded by a publisher, but this week the publisher decided not to continue the project. Heart Machine had no other sources of revenue and no near-term prospects.

Studio founder Alx Preston announced the layoffs on LinkedIn. According to Preston, it is still unclear how Heart Machine will be able to survive. It is not known how many people remain at the company.

The publisher's exit left the studio without funding

Preston writes that without this key revenue, and with no other near-term prospects or funds, almost the entire team had to be let go. The founder called what happened a devastating blow.

Those laid off have been promised as much support as possible, including help finding new jobs. Preston asked anyone who knows of suitable openings to reach out to the studio to help the former employees. In Preston's words, working in the games industry right now is “extremely difficult.” Preston also added that the studio will keep looking for a way forward for as long as it still exists.

Heart Machine layoffs are now in their third year

The current layoffs continue a series of cuts. In November 2024, the studio laid off part of its staff. At the time, the company expected that the release of Hyper Light Breaker could open up new opportunities for those who had been let go.

That did not happen. Heart Machine ended development of Hyper Light Breaker without ever bringing the game out of early access, and in October 2025 it carried out two more rounds of layoffs. Now the studio has also lost publisher funding for its unannounced project.

The studio's best-known games are Hyper Light Drifter and Solar Ash. Hyper Light Drifter, with its pixel-art 2D style, came out in 2016 and received generally positive reviews along with several game award nominations.

What this means for the industry

Heart Machine is not the only one affected. Almost at the same time, reports emerged that Build a Rocket Boy, the developer of MindsEye, appears to be shutting down after a new round of layoffs. Both stories are likely tied to the overall state of the market: publishers are more cautious about investing in new projects and walk away from them more often.

This appears to hit hardest the independent studios that live from contract to contract. A well-known game in the portfolio does not guarantee stability: if the sole partner leaves, a studio can quickly run out of money. Small teams will likely look for multiple funding sources more often, shorten development timelines, and scale down their projects.

Meanwhile, more experienced developers are entering the job market. If the trend continues, finding work in indie development will become even harder, and some specialists may move to adjacent industries or start their own small studios.

Community reaction

On X, reactions to the Heart Machine layoffs are divided, but bitterness and sympathy dominate. Hyper Light Drifter fans remember the game as their gateway into indie games and feel for the team; industry colleagues, including actors and artists, are sending words of support to founder Alx Preston and hoping the studio survives. There is also distinct anger at publishers: contracts often include the right to cut funding without cause and without warning, while an entire payroll rests on a single such deal. The second current is distrust and even gloating. Some players point out that after Drifter the studio failed to repeat its success, that Hyper Light Breaker was shut down in early access without refunds, and they blame Heart Machine for its own missteps. The overall tone: people feel sorry for the staff, but many no longer expect the studio to have a future.

“Many game publishing contracts have a clause: we can cut off funding at any time, for no reason and without warning. You have to negotiate hard to keep that out.”

— @Ian_Fisch (X)

“Heartbreaking. Hyper Light Drifter was my door into indie games, and the art and soundtrack of that game are incredibly special. I bought all their games — it's a shame they couldn't get enough attention to stay afloat.”

— @Marix759636 (X)

“Who? Oh, the company that took my money for Hyper Light Breaker and never refunded it? Oh well.”

— @SE4LS_ (X)

What is behind Heart Machine's crisis: management missteps, dependence on a single publisher, or a cooling indie game market?