Highguard Mass Layoffs Spark Immediate Shutdown Concerns
The year 2026 has begun with troubling developments for new live service video games, as both Highguard and 2XKO have undergone significant team reductions shortly after their official launches. The live service gaming market has become notoriously oversaturated, creating an environment where new titles struggle to attract substantial audiences away from established giants like Fortnite.
Skepticism From The Start
Highguard, a player-versus-player-versus-environment live service game, faced immediate skepticism when it was revealed as the final announcement at The Game Awards 2025. Despite being developed by a team with impressive credentials from Titanfall and Apex Legends, the game quickly became a target for online criticism leading up to its January 26 release on PlayStation 5, Xbox Series X/S, and PC platforms.
The situation has deteriorated rapidly, with most of the development team at Wildlight Entertainment being laid off less than a month after Highguard's launch. Senior level designer Alex Graner confirmed the news through a LinkedIn post, stating he was recently let go and is now seeking new employment opportunities.
'Unfortunately, along with most of the team at Wildlight, I was laid off today. This one really stings as there was a lot of unreleased content I was really looking forward to that I and others designed for Highguard,' Graner wrote in his public statement.
Official Confirmation and Player Exodus
Tech artist Josh Sobel corroborated the layoffs on social media platform X, confirming he was dismissed 'along with most of the staff.' Wildlight Entertainment has officially acknowledged the staff reductions, though the company has not specified exact numbers affected by the decision.
The studio released a statement explaining, 'Today we made an incredibly difficult decision to part ways with a number of our team members while keeping a core group of developers to continue innovating on and supporting the game. We're proud of the team, talent, and the product we've created together.'
While Highguard is not officially shutting down immediately, many industry observers are drawing parallels with Sony's Concord, which famously closed just two weeks after launch due to poor sales and player engagement. Highguard's free-to-play model has not prevented a dramatic player decline, with SteamDB data showing the game launched with nearly 100,000 players but has since dropped to less than 8,000 concurrent users on recent weekends.
Market Comparisons and Executive Statements
This player count pales in comparison to other hero shooters like Marvel Rivals, which regularly attracts hundreds of thousands of players, and Overwatch 2 (now simply called Overwatch), which maintained higher player numbers even before recent updates boosted its popularity.
The current situation presents a stark contrast to statements made by Wildlight CEO Dusty Welch during a Highguard preview event, where he emphasized, 'We're in the business of delighting players and making engaging games. And I think when you realize that you're in the entertainment business, it gets a lot easier to find the right people with the right vision going in the same direction to delight players and find something new.'
When questioned about the common failure of live service games due to inflated expectations, Welch responded, 'We're just going to keep focusing on making a great game for our players, and the rest of it will take care of itself.'
Community Reactions and Industry Context
Even within the Highguard subreddit community, players are expressing expectations that the game will shut down relatively soon. Community member NeverRelapseItsATrap commented, 'Nail in the coffin was episode two/ranked which didn't retain players driven by a suffocating new warden and ranked mode getting too sweaty for the average gamer.'
Highguard is not alone in experiencing post-launch difficulties. Free-to-play fighting game 2XKO, which launched fully on January 20 after an early access period beginning in October, has also seen its development team downsized. Riot Games acknowledged that 'the game has resonated with a passionate core audience, but overall momentum hasn't reached the level needed to support a team of this size long term.'
Despite these challenges, some new live service games have managed to break through successfully. Extraction shooter Arc Raiders, despite its £30 price tag, has sold 14 million copies since its October 2025 launch and maintains approximately six million active weekly players according to publisher Nexon.
However, even successful titles face instability, as demonstrated when Marvel Rivals experienced significant staff layoffs just two months after its successful late 2024 launch, including the departure of game director Thaddeus Sasser.
The gaming industry continues to navigate the complex live service landscape, where player retention and market saturation present ongoing challenges for developers and publishers alike.
