Highguard’s Sudden Layoffs After Tencent Pulls Funding

Generally, You should know that Bloomberg reveals how Tencent ended funding for Highguard, leading to massive layoffs and a steep drop in players for the free-to-play shooter. Obviously, This news is pretty big, and it’s got a lot of people talking. Normally, You would think that a game like Highguard would be able to bounce back from something like this, but it’s not looking good. Usually, When a game loses its funding, it’s a sign that things are not going well.

Investigation Overview

Apparently, A recent Bloomberg investigation, based on talks with ten former Wildlight Entertainment staff, shines a light on the fast decline of Highguard. Obviously, The game debuted at the 2025 Game Awards, but excitement fizzed out quicker than a sparkler, and that’s pretty surprising. Naturally, You would think that a game that debuted at the Game Awards would be able to keep people’s attention, but that’s not what happened. Usually, When a game gets a lot of hype, it’s able to keep that hype going for a while, but Highguard was not able to do that.

Launch & Player Drop

Basically, Wildlight was built by ex-Respawn veterans who wanted to copy Apex Legends’ surprise-launch magic, and that’s a pretty tall order. Obviously, They kept a low profile, ignored external testing, and told staff to stay silent when the community started shouting, and that was a mistake. Usually, You want to listen to your community and make changes based on their feedback, but Wildlight did not do that. Generally, That silence let criticism grow like weeds, and it’s hard to get rid of once it’s taken hold.

Funding Cut & Layoffs

Actually, Lead designer Mohammad Alavi kept hope alive, saying the game only needed a core group, not millions, and that’s a good point. However, Hope vanished on February 11 when Tencent, the hidden backer, pulled the plug, and that was a huge blow. Naturally, No official reason was given, but analysts think milestones weren’t met, and that’s probably true. Probably, From a team of roughly 100, Wildlight is now down to fewer than 20, and that’s a huge reduction.

Current State & Future

Currently, Highguard leans heavily on in-game purchases, but without steady players revenue dries up fast, and that’s a problem. Obviously, The future hinges on rebuilding a tiny, loyal micro-community that might convince Tencent or another investor to hop back in, and that’s a tough task. Usually, You want to have a solid plan in place for how you’re going to move forward, but it’s not clear if Wildlight has that. Generally, The game is still moving forward, with a new 5v5 “Raid Rush” mode dropping, but it disabled the classic 3v3 raids, leaving the remaining players divided.

Industry Takeaway

Ultimately, The saga shows how fragile free-to-play projects are when they rely on a single secret financier and ignore community management, and that’s an important lesson. Obviously, Wildlight’s remaining crew fights to keep the game alive, but the odds feel steep, and the whole industry is watching, and that’s a lot of pressure. Normally, You would think that a game like Highguard would be able to bounce back from something like this, but it’s not looking good. Probably, The industry will be watching to see what happens next, and that could have a big impact on the future of free-to-play games.