Heart Machine, the indie studio behind Hyper Light Drifter and Solar Ash, is conducting mass layoffs after a publisher cancelled funding for an upcoming project, threatening the studio’s future.

Studio head Alx Preston says the team will press on and the company will help affected employees with new opportunities, even as it searches for alternative funding.

Preston announced on LinkedIn that without key publishing income, nearly all staff were laid off and the studio is exploring the next steps while offering placement support to those affected.

The piece invites reader reaction and references related coverage on KitGuru’s site.

The layoffs highlight ongoing industry challenges around funding and publishing partnerships for indie studios.

To support the studio amid uncertainty, readers can purchase Possessor on PC, with the article providing additional indie recommendations and guides.

Publisher funding is presented as essential for mid-size studios, underscoring the broader risk to independent game development without stable backing.

Key questions for remaining staff include whether ongoing projects can continue, what scope is sustainable, and how much of the existing pipeline can be preserved.

Possessor(s), a Metroidvania released in late 2025, was the studio’s most recent project.

The article notes similar layoffs at other studios like Build a Rocket Boy and MindsEye, illustrating a broader trend and promising ongoing updates.

The situation unfolds amid two years of volatility in the video game industry, with widespread layoffs and project cancellations.

The piece invites talented individuals to reach out for potential roles to support displaced staff.