Tencent cancels Last Sentinel game after $300 million investment and 80 layoffs

Tencent has effectively cancelled the ambitious open‑world title Last Sentinel, a GTA‑style game set in a neon‑drenched version of Tokyo. The project, developed by Tencent’s Lightspeed LA studio, consumed more than $300 million over six years. Internal playtests in early 2026 were poorly received, leading the company to deem the game unfit for release.

Following the decision, Lightspeed LA laid off about 80 employees. The studio remains operational, with remaining staff reassigned to a new, unannounced open‑world project under creative director Todd Papy. The cancellation marks a significant setback for Tencent’s push into Western‑market AAA games.