Wildlight Entertainment faced a harsh reality on February 11, 2026, when the studio confirmed layoffs affecting multiple staff members just 16 days after launching Highguard. The free-to-play raid shooter premiered as the final reveal at The Game Awards 2025 in December, securing a prime showcase slot that generated widespread confusion rather than excitement among viewers.
The game launched across PC, PlayStation 5, and Xbox Series X/S on January 26, 2026, with a peak of 97,249 concurrent players on Steam according to SteamDB. Despite the strong launch numbers, player retention collapsed within days, dropping to approximately 3,600 concurrent users by the time layoffs were announced. Former level designer Alex Graner announced on LinkedIn that he and “most of the team” were let go, though the studio did not disclose exact employee counts affected.
Wildlight Entertainment was founded by industry veterans including CEO Dusty Welch (former Apex Legends executive producer) and Game Director Chad Grenier (former Respawn Entertainment studio head who worked on Call of Duty, Titanfall, and Apex Legends). The live service gaming market continues to face challenges in 2026, with several high-profile titles struggling to maintain player engagement beyond launch windows. Similar patterns emerged with other recent multiplayer releases, as covered in our analysis of Arc Raiders’ evolving reward systems.
Highguard By The Numbers
Highguard positioned itself as a raid shooter where three-player squads compete to secure objectives while raiding enemy bases. Each Warden character features distinct weapons, raid tools, and abilities designed for different gameplay loops including siege combat, stealth infiltration, base defense, and open-world encounters. The game launched with a content roadmap spanning 2026, outlined in episodes lasting one to two months each.
Episode 2 released on February 6, 2026, introducing ranked mode, new hero Ekon, and the Skydrift map. This content update attempted to retain the player base just days before the layoff announcement. The crowded hero shooter market proved difficult to penetrate, with established competitors like Overwatch 2 commanding large audiences following major updates in January 2026.
The Game Awards reveal trailer received criticism for failing to clearly communicate Highguard’s unique mechanics or differentiators. CEO Dusty Welch later acknowledged in press interviews that the marketing approach needed improvement, stating the team focused on entertainment value rather than gameplay clarity. For context on how free Steam games can succeed despite competitive markets, see our coverage of D1al:ogue’s 95% approval rating.
Timeline of Events
From Game Awards reveal to studio layoffs in less than 60 days
Concurrent Player Count Decline on Steam
A 96.3% drop in active players within 16 days
Wildlight Entertainment Official Statement
The studio had approximately 200 employees according to LinkedIn records prior to the layoffs. Lead tech artist Josh Sobel also confirmed on LinkedIn that he was among those laid off. Wildlight stated that unreleased content originally planned for Highguard’s 2026 roadmap may not see release following the workforce reduction. The specific number of employees affected was not disclosed in the official statement.
Context: Live Service Game Challenges
Understanding the competitive landscape and industry trends
Looking Forward
Wildlight Entertainment announced plans to continue Highguard operations with a reduced development team. The studio’s 2026 content roadmap outlined multiple episodes of additional content, though implementation timelines remain unclear following the workforce reduction. Highguard remains available as a free-to-play title on Steam, PlayStation 5, and Xbox Series X/S.
The competitive live service market continues to challenge new releases in 2026. Games require sustained player engagement, clear marketing communication, and differentiated gameplay mechanics to establish lasting audiences. Other games facing similar retention challenges have adjusted their content strategies, as seen with Arc Raiders reducing Expedition 2 requirements by 40% to improve accessibility for new players.
Broader gaming industry discussions around platform policies and content distribution also emerged this month, including Epic Games’ disputed content rating decisions. Meanwhile, speculation around legacy franchises continues, with Kingdom Hearts remake rumors disputed by industry insiders. The February 2026 layoffs at Wildlight Entertainment were discussed alongside these broader industry developments affecting studios of various sizes.