Heart Machine lays off nearly all staff after publisher pulls project funding
Summary
Heart Machine founder Alx Preston laid off "nearly everyone" on September 16, 2026, after a publisher canceled funding for an unannounced project.
This is the studio's third contraction since November 2024, following Hyper Light Breaker's early access exit and two October 2025 layoff rounds.
The canceled project was the studio's sole income source, with no other prospects or funds available.
"Right now, I'm not sure yet how or if Heart Machine survives"
01
A single publisher's exit ended the studio's only funding line
Heart Machine had been developing an unannounced title fully funded by one publisher.
Preston stated the publisher "decided to no longer move forward with it" this week.
The cancellation removed the studio's primary income and triggered near-total layoffs.
No successor project, replacement publisher, or bridge financing was available.
02
One-project dependency turned a publisher's call into an existential threat
Preston cited the loss of "this key income for the studio" with no other prospects or funds.
No second announced project or alternate revenue line ran alongside the canceled title.
Survival hinged entirely on one counterparty's continued commitment rather than studio reserves.
03
Three layoff rounds since 2024 point to the funding model as the underlying cause
Heart Machine cut staff in November 2024 after Hyper Light Breaker struggled in Steam Early Access.
Two further rounds hit in October 2025, weeks before Devolver Digital published Possessor(s).
Each contraction traced to a single title's fate rather than a diversified pipeline.
What this means
For Investors & VC: Diligence should flag single-publisher funding as concentration risk in mid-tier studios.
For Publishers & Developers: Studios lacking a second revenue line remain one cancellation from closure.
Events
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Games
Locations
North America
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