Tencent’s Lightspeed LA shifts direction for Last Sentinel game and lays off 80 staff

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Lightspeed LA is laying off 80 staff members and it is shifting its creative and development direction for Last Sentinel.

After extensive internal reviews and playtesting, the Tencent-owned game development studio has decided to shift the creative and development direction of its triple-A game to deliver the experience players expect.

Lightspeed LA remains open and continues to build games, the company said.

“Because of this shift, some roles at the studio will be affected. We are treating affected team members with compassion and respect, offering comprehensive support and where possible the opportunity to transfer internally,” the company said.

Lightspeed said its long-term commitment to North America remains unchanged. North America is a cornerstone of our global gaming strategy, and Tencent will continue to invest in local talent, creative expertise and development across the region.

A recent story in Bloomberg have suggested that Tencent is reducing its investment in games. The studio didn’t provide more details about its direction.

Based on a GDC 2026 interview with Lightspeed’s Feng Zhu, a creative director with 30 years of experience in games, the studio had big ambitions. The studio had multiple ambitions games in development, not all announced.

Lightspeed LA is based in Irvine, California, while Lightspeed Studios is based in Shenzhen, China. Lightspeed Studios’ claim to fame is PUBG Mobile, and Lightspeed Studios itself is a division of gaming giant Tencent. Back in 2023, the firm hadmore than 200 people, including 130 or so in Irvine. It’s was also building a state-of-the-art motion capture studio in Los Angeles.