According to an exclusive Bloomberg report by Jason Schreier published on August 7, the high-profile open-source cyberpunk project Last Sentinel faces cancellation after six years of development and millions of dollars in funding by Tencent.
Development History and Industry Recruiting Surge
Lightspeed LA was established in Irvine, California, between late 2019 and early 2020 by Steve Martin, whose prior industry credits include leadership work on GTA V and Red Dead Redemption 2, as reported by Bloomberg. During the pandemic-era gaming boom of 2020 through 2021, the studio competed aggressively against neighboring regional competitors such as Blizzard, Riot, and Amazon. By offering lucrative six-figure salaries, Lightspeed LA successfully recruited seasoned developers from major studios including Naughty Dog, Rockstar, and Blizzard.
Despite this influx of talent, the studio faced an immense structural challenge regarding workforce scale. According to industry data cited in the Bloomberg report, Rockstar utilized a developer workforce exceeding 2,000 people to build Red Dead Redemption 2, whereas Lightspeed LA operated with only a few hundred staff members. This severe headcount disparity made the studio’s initial ambitions difficult to execute within a realistic production timeline.
The Gameplay Vision and Public Reveal
Last Sentinel was initially introduced to the public at The Game Awards in December 2023. Described as an open-source crime game with a cyberpunk aesthetic, the project featured a female protagonist navigating a massive vertical Tokyo cityscape. The title aimed to blend open-world exploration, driving systems, and player freedom mirroring Rockstar’s design philosophy.
Following its 2023 unveiling, public updates regarding the project virtually ceased for an extended period. Last year, the studio published four development diaries on YouTube, which Schreier’s reporting later revealed to be hype reels containing no actual substance regarding true gameplay progress. Actor Troy Baker, who worked as a performance director on the project, was also noted in the reporting for his comments regarding the tumultuous development status of the game.
Playtest Failures and the July Ultimatum
Closed playtests conducted in early 2026 yielded uniformly negative responses from testers, according to Bloomberg. In response to these internal setbacks, Tencent issued a strict ultimatum giving the team until July to deliver a significantly improved build. Sources close to the project indicated that the subsequent deliverables still fell well below expectations, retaining a rough state far short of the quality standards demanded for a project positioned as Tencent’s answer to GTA. Industry sources noted that the resulting builds would ultimately fail to compete with GTA VI.
Layoffs and Tencent Response
On July 28, a senior Tencent designer joined Steve Martin to inform employees that Tencent would not move forward with the project in its current form. The announcement was followed immediately by the layoff of roughly 80 employees at Lightspeed LA. Tencent disputed claims that the studio was being shut down entirely, characterizing the cuts instead as a shift in creative direction and ongoing development. The publisher stated that Lightspeed LA remains operational and continues to develop games, though it has not clarified whether the scope of the project will remain unchanged or how many staff members currently remain at the facility.
This shutdown adds to a growing historical trend of “GTA-killer” projects led by former Rockstar developers that ultimately result in commercial or developmental failure, echoing the fate of Leslie Benzies’s MindsEye project from the previous year.
Did you know?
Rockstar Games utilized a development team of over 2,000 people to build Red Dead Redemption 2, highlighting the immense staffing requirements needed to build top-tier open-world crime titles in the modern games industry.
Frequently Asked Questions
What was Last Sentinel?
Last Sentinel was an open-world cyberpunk crime game set in a reimagined Tokyo featuring a female protagonist, developed by Lightspeed LA and fully funded by Tencent.
Who founded Lightspeed LA?
Lightspeed LA was founded by Steve Martin, a former Rockstar San Diego head who contributed to GTA V and Red Dead Redemption 2.
Why was the project halted?
According to Bloomberg, the project stalled after closed playtests in early 2026 received negative reviews, and subsequent builds failed to meet Tencent’s quality expectations by a July deadline.
How many employees were laid off?
Approximately 80 employees at Lightspeed LA lost their jobs following the decision by Tencent and studio leadership not to continue the project in its current form.
What are your thoughts on these industry developments? Do you think trying to build direct competitors to massive franchises like GTA carries too much financial risk?
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