Heart Machine faces possible closure after publishing deal falls through; majority of staff laid off

Hyper Light Drifter developer Heart Machine is facing potential closure after a crucial publishing deal fell through, resulting in the majority of the studio's staff being laid off, according to studio head Alx Preston. Without this key income, it seems unlikely that any other immediate opportunities or additional funds will be available to keep the studio afloat.

Preston emphasized that the company will do everything in their power to support affected employees, including aiding with job placement. Preston expressed gratitude towards the talented and dedicated individuals who contributed to Heart Machine's accomplishments and to the supportive community and fans. Despite the challenges faced by the gaming industry, Preston remains uncertain about Heart Machine's future, but the studio is committed to finding a way to continue operations.

Heart Machine has experienced three rounds of layoffs in the last three years, with the most recent taking place in October 2025, following the conclusion of development on Hyper Light Breaker. The first round of layoffs occurred during the development of Hyper Light Breaker, while two additional rounds took place in October 2025.

The source material indicates that affected employees reported the second round of layoffs just 12 days before the launch of Possessor(s). One employee highlighted the difficulty in retaining the team members who worked on the game. In 2024, Heart Machine voluntarily recognized a union following a group of 13 staff members forming a bargaining unit.