Heart Machine, the developer of the Hyper Light games and Possessor(s), has laid off "nearly everyone at the studio" following the collapse of a deal with an unnamed publisher for funding of its next project."I have very difficult news today," studio founder Alx Preston wrote on LinkedIn. "We had been working on an unannounced title, funded by a publisher. This week, they decided to no longer move forward with it. Without this key income for the studio, any other immediate prospects or other funds, nearly everyone at the studio had to be laid off. It's devastating."Everyone will be provided with as much support as possible, including assisting with placement. If you know of any roles for extraordinarily talented, kind people, please reach out and we will coordinate."Heart Machine's debut game, Hyper Light Drifter, launched to critical and commercial success in 2016; the studio's follow-up Solar Ash, didn't meet quite the same acclaim when it arrived in 2022, and Heart Machine ran into trouble a few years later, ending development of Hyper Light Breaker while it was still in early access and laying off employees. Released just after those layoffs were imposed, the action-platformer Possessor(s) earned "mostly positive" reviews on Steam, but not very many of them.It's not clear what comes next for Heart Machine. Preston said the studio will "keep pushing to find a path," but also warned that at this point, he's "not sure yet what's next for Heart Machine to survive." 2026 games: All the upcoming gamesBest PC games: Our all-time favoritesFree PC games: Freebie festBest FPS games: Finest gunplayBest RPGs: Grand adventuresBest co-op games: Better together