Heart Machine loses publisher funding for an unannounced game and lays off most staff

An unnamed publisher ended support for Heart Machine's next project, removing a key source of studio income and forcing layoffs of nearly the entire team.

Heart Machine founder Alx Preston says an unnamed publisher has stopped funding the studio's unannounced project. Without that income or an immediate replacement, the Hyper Light Drifter developer laid off nearly everyone at the company.

The event shows the operational risk created when a studio's payroll depends on one external publishing agreement. Even a team with recognised IP and shipped games can face an immediate crisis if a partner exits before another project or financing route is ready. Heart Machine says it will help affected staff find roles and continue searching for a path forward, but its future remains uncertain.