Significant staff cuts have been made at US-based "LightSpeed LA", a studio owned by Chinese media and technology giant "Tencent". It is reported that at least 80 employees lost their jobs after the decision to change the creative and development direction of the studio's first major project, "Last Sentinel".
According to information obtained by "Bloomberg" from insider sources, the layoffs affected various departments of the development team. The company's official statement said that despite the situation, the studio is not shutting down completely:
"Due to these changes in creative and development direction, some positions at the studio are no longer needed. However, "LightSpeed LA" continues to operate and remains focused on working on new games. We are treating the team members affected by this decision with respect and care, offering them a severance package as well as opportunities for internal transfers where possible."
The company management also emphasized that "LightSpeed"'s long-term strategy in North America remains unchanged, and that investments in local creative talent and development resources in the region will continue.
Located in Irvine, California, "LightSpeed LA" was founded in 2020 under the leadership of Steve Martin, a former member of "Rockstar Games"' creative team. The studio operates as the American division of the giant "LightSpeed Studios", based in Shenzhen, China.
The studio's latest project, "Last Sentinel", an open-world cyberpunk action-adventure game, was first announced at "The Game Awards 2023". According to insider information, the project has already been in development for six years.
Sources cited by "Bloomberg" say that the game has been delayed several times and that its budget has exceeded hundreds of millions of dollars. It is even claimed that "Tencent" has considered completely halting the project's funding and putting it on hold.
However, in an exclusive statement to "IGN", representatives of "LightSpeed LA" indirectly denied rumors that the game had been completely canceled, saying that they would share updates on the development process with the public as soon as they were ready. The company also reminded that an official release date for the game has not yet been announced.
The wave of mass layoffs observed in the gaming industry over the past two years is now seriously affecting even big-budget projects. The lengthy development process and uncertain release dates of resource-intensive games like "Last Sentinel" are exhausting investors' patience. "Tencent"'s latest decision once again proves that even the wealthiest companies are forced to reduce the risks of costly projects whose success is not guaranteed.
