Highguard Studio Wildlight Down To Fewer Than 20 Staff As Tencent Reportedly Pulls Funding

Wildlight Entertainment, the studio behind Highguard, has reportedly been reduced to fewer than 20 remaining employees.

The development comes alongside reports that Tencent has withdrawn its financial backing from the studio, casting serious doubt over Wildlight’s future and the trajectory of Highguard itself.

A Studio Shrinking Fast

According to reporting from Jason Schreier, staffing at Wildlight has dropped dramatically, with fewer than 20 employees still at the company.

For context, modern multiplayer titles particularly ones positioned as live-service experiences typically require substantial post-launch support teams. A headcount this small raises immediate questions about whether the studio can sustain long-term development without additional backing.

Tencent Reportedly Pulls Funding

Compounding the issue is the reported withdrawal of funding from Tencent.

Tencent has become one of the most influential investors in the global games industry over the past decade, often providing crucial capital for ambitious projects. If funding has indeed been pulled, it would represent a significant blow to Wildlight’s operational runway.

Neither Tencent nor Wildlight has publicly outlined the full reasoning behind the decision.

What This Means For Highguard

Highguard launched with clear ambitions aiming to carve out space in the competitive multiplayer arena. But maintaining momentum in that segment is notoriously difficult, particularly in a market dominated by established live-service giants.

If the studio remains operational with a skeleton crew, development priorities may shift toward:

• Stabilizing existing content
• Scaling back new feature rollouts
• Seeking new investment or acquisition

There’s also the possibility of a more formal restructuring, though no such plans have been announced publicly.

Wildlight’s situation fits into a broader pattern seen across the industry over the past few years. Studios that expanded aggressively during peak investment cycles are now facing tighter capital markets and more cautious publishers.

Live-service development in particular has become high-risk, high-cost, and brutally competitive.

For now, Wildlight Entertainment hasn’t confirmed closure but with fewer than 20 staff remaining and reported funding withdrawn, the studio’s next move could determine whether Highguard survives as an ongoing project or quietly winds down.

As always, we’ll update if further clarification is provided.