Highlights
- Lightspeed LA is restructuring Last Sentinel, after internal reviews found the project needed a new creative direction.
- Around 80 employees were reportedly affected as the Tencent-owned studio reshaped development of its upcoming AAA title.
- The decision comes as Tencent reportedly reassesses parts of its global gaming portfolio and investment strategy.
Tencent-owned Lightspeed LA has laid off staff after changing the creative and development direction of its upcoming AAA title Last Sentinel. The studio disclosed the decision followed extensive internal reviews and playtesting, which showed the project needed changes "to deliver the experience players expect."
GamesBeat reported that around 80 employees were affected.
In a statement shared with IGN, Lightspeed LA stated that affected employees are receiving support and, where possible, opportunities to transfer internally. The studio even stressed that its long-term commitment to North America remains unchanged, calling the region "a cornerstone" of its global gaming strategy. It added that Last Sentinel has no release date and that further updates will be shared when ready.
Last Sentinel Remains Central to Lightspeed's AAA Ambitions
Announced at The Game Awards 2023, Last Sentinel is a narrative-driven open-world action game set in a dystopian Tokyo where players assume the role of elite operative Hiromi Shoda.
Since its reveal, Lightspeed has expanded the team behind Last Sentinel by appointing former Sony Interactive Entertainment executive, Michael Pattison, as vice president (VP) Global PC/Console Publishing. The studio additionally recruited Dragon's Dogma director, Hideaki Itsuno, to lead a new studio in Japan.
Lightspeed further strengthened development by bringing renowned voice actor Troy Baker onboard as performance director and opening a dedicated motion capture and virtual production facility to support its internal projects. Earlier in 2026, the company likewise introduced a proprietary AAA development framework emphasizing strong visual identity over graphical fidelity alone.
Job Cuts Come Amid Tencent's Broader Portfolio Review
The layoffs follow reports that Tencent is reviewing parts of its global games investment strategy, including discussions to exit several minority stakes in Japanese studios. The company is also allegedly increasing its focus on user-generated content (UGC) platforms.
Bloomberg reported that investments in PlatinumGames and FromSoftware are not part of the review, although other holdings could be affected.
The latest move also follows layoffs at Tencent-owned Sumo Digital in February 2026 and Tencent's decision not to provide additional short-term funding to Don't Nod. Separately, Double Fine (formerly owned by Xbox) recently cut approximately 25% of its workforce after returning to independent ownership, highlighting continued restructuring across the games industry.
