Highguard's Staff Laid Off as Shutdown Fears Grow

The Struggles of Highguard and the Challenges of Live Service Games

2026 is already proving to be a tough year for new live service video games, as both Highguard and 2XKO have faced significant setbacks shortly after their launches. These challenges highlight the difficulties that come with entering an already saturated market.

The live service games market has become so crowded that it's nearly impossible for new titles to gain a substantial audience. Players are often drawn to established names like Fortnite, making it hard for newcomers to stand out. This trend was evident even before the launch of Highguard, the latest attempt at a PvPvE live service game. Despite the pedigree of its development team, which includes former Titanfall and Apex Legends staff, Highguard quickly became a target for criticism.

Highguard was revealed as the final showcase at The Game Awards 2025, but the initial reception was mixed. As the game launched on January 26 for PlayStation 5, Xbox Series X/S, and PC, many were skeptical about its potential. Unfortunately, these doubts have been realized, as Wildlight Entertainment, the developer behind Highguard, has had to downsize its team just a month after the release.

Senior level designer Alex Graner broke the news via a LinkedIn post, where he shared his experience of being laid off. He expressed his disappointment, mentioning that there was a lot of unreleased content he and others had designed for Highguard.

Tech artist Josh Sobel also confirmed the layoffs on X, stating that he was let go along with most of the staff. Wildlight itself acknowledged the situation, though they did not specify the number of employees affected. They stated that they made a difficult decision to part ways with some team members while keeping a core group to continue supporting the game.

“We’re proud of the team, talent, and the product we’ve created together. We’re also grateful for players who gave the game a shot, and those who continue to be a part of our community,” the company said in a statement.

Is Highguard Shutting Down?

Officially, Highguard will not be shutting down immediately. However, many players and observers are assuming that this might be the case. The comparison to Sony’s Concord, which shut down just two weeks after its launch due to poor sales and player numbers, is inevitable.

Unlike Concord, Highguard is completely free-to-play, which means there’s less of a barrier to entry. However, it seems to be struggling to retain players, especially on PC. According to SteamDB, the game launched with nearly 100,000 players, but by last weekend, the number dropped below 8,000, and even fewer in the following days.

This is a stark contrast to other hero shooters like Marvel Rivals, which regularly attracts hundreds of thousands of players. Even Overwatch 2, despite its challenges, has consistently drawn more players than Highguard, especially after a recent overhaul.

The CEO’s Perspective

Wildlight CEO Dusty Welch had previously expressed confidence in the game during a preview event, stating that the company wasn’t concerned with launch numbers. “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, than to be like, ‘let’s make a business about making video games,’” he said.

When asked about the common issue of live service games failing 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.”

Conclusion

The challenges faced by Highguard reflect the broader issues within the live service game market. While the game may not be shutting down immediately, the recent layoffs and declining player numbers suggest that the road ahead is uncertain. For now, the focus remains on supporting the existing player base and continuing to innovate, even in the face of adversity.