Tencent has reduced the workforce at its North American subsidiary, LIGHTSPEED LA.

LIGHTSPEED LA is the U.S. division of Tencent's LIGHTSPEED STUDIOS and has been developing the upcoming title 'Last Sentinel.' The studio confirmed the layoffs in a statement to IGN, citing a shift in the project's creative and development direction. According to GamesBeat, the reduction affects 80 employees.

Internal reviews and playtests were cited as the reasons for the shift in development direction. The studio explained that the adjustments were made to "deliver the experience players expect," adding that it would provide support and internal transfer opportunities to those affected.

'Last Sentinel' was first unveiled at The Game Awards (TGA) in 2023. Set in a near-future Tokyo, the open world action game is being developed as a AAA narrative title for PC and consoles. While it drew attention in 2024 when renowned actor Troy Baker joined as performance director, there has been little news regarding the specific progress of its development since the initial reveal.

The studio plans to continue development without closing its doors. The company emphasized that its long-term commitment to the North American market remains unchanged and that it views the region as a core pillar of its global gaming strategy.

However, some observers suggest this may signal a broader trend of Tencent scaling back its Western studio operations. Previously, TiMi Montreal, established in Canada, was shut down without releasing a new title. Conversely, LIGHTSPEED is taking a different approach, having recently established a new studio in Japan and appointed director Itsuno Hideaki to lead its efforts.

The timeline for the resumption of 'Last Sentinel' development and its specific release target have not yet been disclosed.