Heart Machine lays off nearly all staff after funding falls through
In brief
- Heart Machine, known for Hyper Light Drifter and Solar Ash, has laid off nearly all remaining staff after a publisher dropped funding for an unreleased game.
Studio head Alx Preston told Kotaku he is not sure whether Heart Machine will continue to exist.
The studio, known for Hyper Light Drifter and Solar Ash, says it is supporting affected employees with help finding new work.
What happened
Kotaku reported on September 16, 2026 that Heart Machine has laid off almost all of its remaining staff. The trigger was a publisher backing out of funding for an unannounced title. According to the report, the project had already secured funding, but that support was later withdrawn. The article does not name the publisher or give exact layoff numbers.
Alx Preston, co-founder and studio head of Heart Machine, said in a statement that he is not sure how or whether the studio will continue. That leaves Heart Machine’s future uncertain for now. Kotaku describes the layoffs as extensive and says nearly everyone still working at the studio was affected. The report ties the situation to the failed funding for the unreleased game, not to an announced release or an already shipped title.
Heart Machine says it is supporting the employees affected, including with help finding new jobs. The studio is best known as the developer of Hyper Light Drifter and Solar Ash. The article also notes that Heart Machine has not shared further details about the project that lost funding, leaving both the title and the game’s contents unknown.
Timeline
September 16, 2026: Kotaku reports that Heart Machine has laid off nearly all remaining staff after funding for an unreleased game fell through.
September 16, 2026: Alx Preston says in the report that he is not sure whether Heart Machine will survive, leaving the studio’s future open.
September 16, 2026: Heart Machine says it is supporting laid-off employees, including with job placement help and other assistance.
September 16, 2026: Kotaku reports that the publisher did not continue funding, but does not name the publisher or provide exact layoff numbers.
September 16, 2026: The report places Heart Machine’s situation in the context of a difficult market for game developers, with the studio’s recent releases failing to break through in a major way.
Background
Heart Machine first became known for Hyper Light Drifter and Solar Ash, two games explicitly referenced in the Kotaku article as key touchpoints for the studio. The new situation does not involve either of those released titles, but rather an unreleased project that had reportedly already been funded before the deal fell apart. That makes not only the future of that specific project uncertain, but also the studio’s broader operations.
The article frames the layoffs against a difficult market for game developers. Kotaku says Heart Machine’s recent releases did not achieve a major breakout, adding more pressure to the studio. The report does not include revenue figures, sales results, or concrete financial details, but it does make clear that the lost funding had an immediate impact on staffing.
The core of the news is that a previously funded, unreleased project lost its follow-up financing. As a result, Heart Machine’s future is uncertain. Based on the available information, the studio has not yet provided additional details about a restructuring, a restart, or continuing in a smaller form. It also remains unclear whether the team will be rebuilt later or whether this layoff round marks the end of the studio.
Heart Machine was previously known for Hyper Light Drifter and Solar Ash, two games explicitly mentioned in the Kotaku article as reference points for the studio. The new situation is not about one of those released titles, but about an unreleased project that, according to the report, had funding before the deal fell through. That means not only the future of that specific project is uncertain, but also the studio’s wider business operations.
The article places the layoffs in the context of a difficult market for game developers. Kotaku writes that Heart Machine’s recent releases did not deliver a major breakthrough, which increased pressure on the studio further. The publication does not mention revenue figures, sales results, or specific financial details, but it does make clear that the lost funding directly affected staffing levels.
The key point is that a previously funded, unreleased project lost its follow-up financing. As a result, Heart Machine’s future is uncertain at this time. Based on the available information, the studio has not provided additional explanation about a possible restructuring, a relaunch, or continuing in a smaller form. It also remains unclear whether the team will be rebuilt later or whether this layoff round marks the end of the studio.
Sources
- Kotaku: "Nearly Everyone Laid Off As Hyper Light Drifter Studio Risks Closure; 'I'm Not Sure Yet How Or If Heart Machine Survives'"