Unexpected Layoffs Rock Highguard Developers Following Tencent's Funding Withdrawal

The creators of the free-to-play multiplayer shooter, Highguard, faced unexpected job losses after its primary financial backer, Tencent, ceased funding. This abrupt decision, detailed in a recent report, highlights the tumultuous journey of the game, from its surprising debut to a dramatic drop in its player base.

Wildlight Entertainment, the studio behind Highguard, was founded by individuals who had previously contributed to the success of Apex Legends. Inspired by their past achievements, the leadership aimed to replicate a similar launch strategy for Highguard, which involved a stealth release without extensive pre-launch promotion or external playtesting. While internal feedback was overwhelmingly positive, this approach meant that potential issues, particularly concerning the game's complexity, were not identified by external audiences.

Highguard's grand reveal at the 2025 Game Awards, however, did not achieve the desired impact, failing to resonate universally with players. Following this, the studio maintained a tight-lipped stance as public confusion and negativity mounted. Instead of proactively addressing player concerns, the team was reportedly advised to remain silent, allowing discontent to deepen within the community.

Upon its launch on January 26, Highguard initially attracted nearly 100,000 players. However, this surge was short-lived, with player numbers plummeting to fewer than 400 within a mere two weeks. The rapid exodus of players signaled a critical failure in retaining user engagement, a vital component for any free-to-play title reliant on in-game purchases.

The devastating layoffs occurred less than three weeks after the game's release, affecting most of Wildlight's employees. Employees were reportedly under the impression that there was sufficient funding to sustain operations for several months, providing an opportunity for the game to recover and grow. Lead designer Mohammad Alavi had even expressed that Highguard didn't require massive player counts for success, emphasizing the goal of cultivating a dedicated fan base. However, on February 11, staff were informed that Tencent had withdrawn its financial support. Although no specific reason was given, it is widely assumed that the game failed to meet critical performance targets, leading to the cessation of funding. Consequently, the development team has shrunk from 100 individuals to fewer than 20.

Despite these significant setbacks, development on Highguard continues, with a recent update introducing a new 5v5 'Raid Rush' mode. However, this update has received mixed reactions, partly because the new mode temporarily replaced the standard 3v3 raids, further disrupting player experience. The core challenge remains Highguard's inability to establish a consistent, returning player base. As a free-to-play game, its long-term viability hinges on players investing in in-game content, which is directly tied to sustained engagement. Without a loyal community, the game faces an increasingly uphill battle to achieve the critical mass needed for survival.