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Lightspeed LA Lays Off 80 as Last Sentinel Project Is Reportedly Abandoned

The decision follows costly setbacks and forces Tencent to rethink its push into Western AAA development.

Overview

  • Lightspeed LA confirmed roughly 80 layoffs in late July, saying the cuts resulted from a shift in the game's "creative and development direction."
  • Last Sentinel spent about six years in development with repeated delays and negative internal playtests early in 2026 that prompted extensive reviews.
  • Multiple outlets report Tencent has effectively shelved the game after roughly $300 million in reported spending, though Tencent and the studio stop short of formally declaring a cancellation.
  • The studio remains operational and plans to reassign remaining staff and possibly reuse Last Sentinel code and assets in a new, unannounced open-world project reportedly led by Todd Papy.
  • The episode highlights the high cost and risk of building Rockstar-scale open worlds at newer Western studios and leaves affected employees eligible for support and internal transfers from Lightspeed LA.