Heart Machine, the studio behind Hyper Light Drifter and Possessors, is in serious trouble after a publisher pulled funding for an unannounced project. The news came from Alx Preston, the studio’s founder, in a LinkedIn post dated September 16, 2026.
Preston wrote that the publisher “decided to no longer move forward with it,” leaving the studio without the income it needed to keep running. That decision forced Heart Machine to lay off “nearly everyone.”
“It’s devastating,” Preston said. He confirmed that all people involved would be given “as much support as possible, including assisting with placement.” He added that the existing team will “keep pushing to build a path.”
“Thank you so so much to all of the incredible people who contributed their efforts and talents to making amazing things at the studio. Thank you to our amazing community and fans.”
The studio’s most recent game, Possessors, is a search-action title that came out in November 2025. IGN’s Matt Kim praised it as a “fast-paced action-adventure” with “rapid-fast” combat that lets players “wield a computer mouse like a whip.”
Hyper Light Drifter remains the studio’s biggest name. It is a heavily-stylized 2D action game that has become a cult classic among fans over the last decade.
What Happened
Heart Machine lost its publisher’s funding for an unannounced project. That funding supported the studio’s operations, and without it, the company had no choice but to lay off nearly everyone on staff.
Preston’s LinkedIn post was direct about the scale of the loss. The phrase “nearly everyone” suggests the layoffs touched most of the people working at the studio.
The Context Around Other Studios
Double Fine laid off around 25% of its staff in late July. Those layoffs were a direct result of the studio going independent due to Xbox’s massive restructuring efforts this summer. The two companies parted ways, though Double Fine kept its IPs in the amicable ‘divorce.’
Despite that setback, Double Fine founder Tim Schafer has moved forward at full speed. He said, “no one puts Double Fine out of business besides me.” Fans are hopeful that Heart Machine will also survive this latest hit with a similar amount of moxie.
Earlier today, multiple employees at Build a Rocket Boy announced that they were laid off. That announcement casts further doubt on the studio’s future following Mindseye’s rocky launch last year.
What Comes Next
Preston is not certain whether Heart Machine will survive this financial blow. He said the existing team will “keep pushing to build a path.”
The situation is fluid. Preston has not ruled out recovery, and he confirmed that laid-off staff will receive assistance including placement help.
Key Facts
- Heart Machine lost publisher funding for an unannounced project.
- The studio laid off “nearly everyone” as a result.
- Possessors, the studio’s most recent release, came out in November 2025.
- Hyper Light Drifter remains the studio’s biggest hit.
- Double Fine laid off around 25% of its staff in late July.
- Build a Rocket Boy employees were laid off today.
Heart Machine is the latest studio to hemorrhage employees. The comparison to Double Fine shows that studios can face hardship even when leadership stays confident.
The road ahead is unclear.
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