
Heart Machine Lays Off Nearly Everyone After a Pullout
Founder Alx Preston says the Hyper Light Drifter studio lost its funding this week and had to cut almost all staff, leaving him unsure whether Heart Machine can survive.
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11 stories tagged Layoffs

Founder Alx Preston says the Hyper Light Drifter studio lost its funding this week and had to cut almost all staff, leaving him unsure whether Heart Machine can survive.

Seattle studio Polyarc, the team behind the Moss series and its flat-screen reissue Moss: The Forgotten Relic, announced its closure on September 11, 2026. Twenty-nine staff are affected, including all three Bungie-veteran co-founders, just eight weeks after the studio's final game shipped.

The Until Dawn and Dark Pictures Anthology studio has begun a redundancy consultation covering up to 75 roles, following roughly 90 cuts in February 2024 and 35 in July 2025. Supermassive reported 172 staff at the end of 2025, and the cuts follow Directive 8020's soft launch and CEO Robert Henrysson's exit.

ZeniMax Online Studios is delaying three major Elder Scrolls Online features - the long-requested Warden class overhaul, the Crimson Veldt Trial, and Update 52 - into 2027, after Xbox's restructuring laid off 213 ZeniMax Online staff, including the game's former director and studio head. New game director Nick Giacomini says Update 51 still ships September 28 and insists 'ESO is here to stay.'

Facing concerns that Xbox's latest round of layoffs would delay The Elder Scrolls 6, Bethesda told YouTuber MrMattyPlays directly: 'No, the roadmap is unaffected.' Jason Schreier's own reporting still pegs the game at two to three years from completion.

Tim Schafer confirmed Double Fine Productions has laid off 23 employees, just weeks after the Psychonauts 2 studio was spun off from Xbox as an independent company. Double Fine keeps its IP and catalog, with Xbox funding future projects, but the studio says it had to resize to survive on its own.

Disco Elysium developer ZA/UM has issued redundancy or at-risk notices to up to 32 employees, two months after Zero Parades: For Dead Spies launched to strong critical acclaim but weak commercial performance. It's the studio's second round of layoffs since 2024.

Just 26 days after the acclaimed bullet-hell shooter Luna Abyss launched to an 81 Metacritic and a day-one Game Pass deal, developer Kwalee Labs has laid off its entire nine-person team. CEO Hollie Emery called the decision 'completely outside of our control.' The studio, formerly Bonsai Collective, spent seven years building the game.

Microsoft's Xbox division is bracing for another wave of layoffs and studio closures as its fiscal year ends June 30. Ninja Theory (Hellblade) is reportedly being shut down, while Compulsion Games and Double Fine negotiate to spin off - and XGS head Craig Duncan is said to be stepping down.

Bloomberg's Jason Schreier reports Sony's Bungie is planning a 'significant' layoff round once the June 9 Monument of Triumph update closes out Destiny 2 development - no Destiny 3 greenlit, senior staff pivoting to Marathon, and Sony's books carrying in single-year Bungie write-downs.

Epic Games has confirmed layoffs affecting over 1,000 staff, citing a prolonged decline in Fortnite engagement that has strained the company's finances.