Studio Behind Hyper Light Drifter In Peril After Publisher Withdraws Funding for Unannounced Project

Heart Machine, the development studio behind titles like Hyper Light Drifter and Possessors, is in dire straits after a publisher withdrew their funding for an unannounced project.

The news was shared to LinkedIn by Heart Machine’s founder, Alx Preston, on September 16, 2026. Preston explained that the publisher funding this unannounced title “decided to no longer move forward with it,” and without this income, the studio was forced to lay off “nearly everyone.”

“It’s devastating,” Preston wrote, going on to confirm that all people involved would be given “as much support as possible, including assisting with placement.”

Currently, Preston isn’t certain whether or not Heart Machine will survive this devastating financial blow, but says that its 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,” he said.

Heart Machine’s most recent offering, a search-action game titled Possessors, released in November 2025. It received mostly positive reviews from fans, with IGN’s Matt Kim calling it a “fast-paced action-adventure” with “rapid-fast” combat that lets players “wield a computer mouse like a whip.”

Its most famous title, Hyper Light Drifter, is a heavily-stylized 2D action game that has become a cult classic among fans over the last decade, with IGN praising it as a “gorgeous, fast, fluid trek in a neon apocalypse.”

Heart Machine is the latest studio to hemorrhage employees after Double Fine laid off around 25% of its staff in late July. These layoffs were a direct result of the studio going independent due to Xbox’s massive restructuring efforts this summer, which saw the two companies part ways, though Double Fine got to keep its IPs in the amicable ‘divorce.’

Despite this setback, Double Fine founder Tim Schafer has made it clear that he’s moving forward at full speed, saying “no one puts Double Fine out of business besides me” — and fans are hopeful that Heart Machine will also survive this latest hit with a similar amount of moxie.

And earlier today, multiple employees at Build a Rocket Boy announced that they were laid off, casting further doubt onto the studio’s future following Mindseye’s rocky launch last year.