Why did Highguard's developer lay off staff?

Rapid layoffs hit Highguard developer after launch

Wildlight Entertainment confirmed it has cut a large portion of its team just weeks after Highguard’s release. The reductions came after a brief, rocky rollout: Highguard launched in January after a high-profile reveal at The Game Awards and then struggled to find sustainable traction. Former employees and multiple reports described the cuts as affecting “most” of the staff, with company statements saying the studio has "parted ways" with an unspecified number of people while a smaller, core team remains to support the game.

Several factors contributed to the move:

• The game’s commercial performance fell short of the studio’s expectations and the high bar set by live-service peers. Reviews and player response were mixed, and early engagement appears to have declined after launch hype.
• Highguard’s free-to-play live-service model left the studio vulnerable to fast-changing player sentiment. Live-service games often need steady player numbers to fund ongoing development, and quick drops in active users can force immediate cuts.
• A highly visible reveal and subsequent online backlash put extra pressure on the team and the brand; online criticism amplified reputational damage and complicated community rebuilding.

What this means going forward

Wildlight says a smaller team will continue supporting the title, but the layoffs underline how unforgiving the current live-service economy can be for mid-size teams. For players, sustained support and new content could slow as the studio reorganises. For staff, the episode is a reminder of the tight coupling between launch momentum and long-term studio health in the live-service era. The situation is also prompting wider industry conversation about the risks of rapid live-service commitments, especially for studios without the deep reserves or backup franchises that larger publishers can rely on.