Lightspeed LA, the US-based subsidiary of Tencent-owned Lightspeed Studios, and the developer behind Last Sentinel, is laying off staff.

The studio confirmed the news in a statement to IGN, announcing a shift in creative and development direction for the project, which was announced back in 2023.

The decision was taken after "extensive internal reviews and play-testing," signaling that early impressions didn't meet expectations. The changes are intended to "deliver the experience players expect."

As a result, roles at the company have been impacted. "We are treating affected team members with compassion and respect, offering comprehensive support and, where possible, the opportunity to transfer internally," the statement reads. According to GamesBeat, 80 employees are losing their jobs.

"Lightspeed's long-term commitment to North America remains unchanged. North America is a cornerstone of our global gaming strategy, and we will continue to invest in local talent, creative expertise and development across the region," the original statement concludes.

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In a follow up statement to IGN, the developer said it will "share updates when ready" in regards to Last Sentinel.

Since Last Sentinel's announcement, Lightspeed Studios brought in a new hire for its executive team, with Michael Pattison joining as vice president of the publishing division for PC and console games, bringing years of experience at Sony Interactive Entertainment, THQ, and Capcom.

The developer also opened a facility dedicated to motion capture, virtual and post-production, and video editing for its internal projects. At the time, which was two years ago, Lightspeed VP Steve C. Martin said the building marked a "significant milestone" in the studio's plans to grow as a developer.

In addition, actor Troy Baker was brought on as Last Sentinel's performance director, and Lightspeed also tapped Dragon's Dogma director Hideaki Itsuno to lead a new studio in Japan.

There haven't been many updates about the project since. In March of this year, Lightspeed unveiled a proprietary IP development framework for building triple-A titles at scale. As part of the announcement, the company said the structured system is shaped by a prioritization of "strong visual identity and art direction over sheer graphical fidelity."

All the while, over the past month, Tencent has reportedly been negotiating exits from several of its studio investments in Japan, while Don't Nod has been pursuing "several levers" to secure financial future after the conglomerate decided against short-term investment. In February, Sumo Digital, another Tencent-owned company, laid off an unknown number of employees.

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About the Author

Diego Argüello

Contributing Editor, News, GameDeveloper.com

Diego Nicolás Argüello is a freelance journalist and critic from Argentina. Video games helped him to learn English, so now he covers them for places like The New York Times, NPR, Rolling Stone, and more. He also runs Into the Spine, a site dedicated to fostering and supporting new writers, and co-hosted Turnabout Breakdown, a podcast about the Ace Attorney series. He’s most likely playing a rhythm game as you read this.