Heart Machine has laid off "nearly everyone" at the studio after a publisher pulled funding for an unannounced title this week. Founder Alx Preston announced the cuts on LinkedIn and said he does not know whether the studio can survive.

"I have very difficult news today. We had been working on an unannounced title, funded by a publisher. This week, they decided to no longer move forward with it," Preston wrote. "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."

The publisher behind the cancelled project remains unnamed. The decision removed the studio's primary revenue stream, and Preston said Heart Machine had no other immediate prospects or funds to cover payroll.

What happens to the affected staff?

Preston committed to supporting departing employees and asked the industry for help placing them. "Everyone will be provided with as much support as possible, including assisting with placement. If you know of any roles for extraordinarily talented, kind people, please reach out and we will coordinate," he wrote.

The exact number of remaining employees is unclear. Preston described navigating the games industry as "extremely difficult" and cast doubt on the studio's ability to recover from this round of cuts.

"I'm not sure yet what's next for Heart Machine to survive. However, we'll keep pushing to build a path while we are still here," he added.

Why did the studio reach this point?

This week's layoffs cap three years of contraction at the Los Angeles-based indie developer:

• November 2024: Heart Machine laid off a portion of its workforce, suggesting at the time that the launch of Hyper Light Breaker might "rekindle" opportunities for those affected.
• Before October 2025: The studio cut Hyper Light Breaker loose before the roguelite ever left early access.
• October 2025: Two more rounds of layoffs followed the title's cancellation.
• This week: The publisher withdrawal triggered the near-total staff reduction.

Heart Machine built its reputation on 2016's Hyper Light Drifter, the top-down action title that established the studio as a flagship indie name. Hyper Light Breaker, its early-access follow-up, was intended to anchor the studio's next phase but never reached full release.

What does this mean for indie studios dependent on publisher funding?

The collapse illustrates the exposure studios face when a single publishing deal underwrites most of their operations. When the unnamed publisher walked away, Heart Machine had no alternative funding lined up, forcing immediate mass layoffs rather than a managed downsizing.

For a studio of Heart Machine's profile — a recognized brand with a shipped catalog — the inability to secure bridge financing signals how sharply publisher appetite has tightened. Preston's public appeal for placement help also shifts part of the burden onto the wider development community, a pattern repeated across studio closures in the current downturn.

Whether Heart Machine secures new funding, finds another publishing partner or winds down entirely remains unresolved. Preston's own framing — "while we are still here" — makes clear the studio is operating on a short runway, and any announcement of a rescue deal or a formal closure is the next signal to watch.