Media: Tencent is the main source of funding for Highguard developers
The studio Wildlight Entertainment, responsible for the troubled shooter Highguard, is an independent company. But where does it get the money to make a large-scale free-to-play shooter? As reported by Stephen Totilo from Game File, the "lead investor" for Wildlight is the Chinese giant Tencent.
It is unknown exactly how much Tencent has invested in Wildlight, but technically the developers of Highguard retain their independence. Moreover, both companies do not publicize their partnership.
What could this be related to? The editor-in-chief of The Game Business, Christopher Dring, provided some context. When a large independent studio forms, it typically goes through funding rounds where it asks investors to support its project or the studio itself. Various groups can participate in these rounds, and Tencent regularly invests in new teams.
When a big independent studio forms, they typically go through funding rounds where they ask investors to support their project/studio. Various groups can invest in these rounds. Historically, Tencent has been a regular investor in new teams. You’d be surprised at how many other… — Christopher Dring (@Chris_Dring)
You would be surprised to learn how many studios actually have such "secret" (not really that secret) funding from Tencent. Game development costs money. External investment does not diminish a studio's independence. Moreover, often this money is barely enough to cover everything needed. Several rounds of investment are required, and sometimes a publisher's help is needed.
Tencent and other investors Christopher Dring
And while it's hard to argue with Dring's words about the limited financial reserves of investors, Tencent clearly has more resources than some. The Chinese giant holds stakes in a number of Western studios like Techland, Bloober Team, Arrowhead Studios, and Remedy Entertainment. Furthermore, Tencent participated in the creation of Ubisoft's "daughter" company — Vantage Studios.
Recently, layoffs occurred at Wildlight Entertainment, and the Highguard website has been unavailable for some time. The latter fact should not be taken as a signal of the game's imminent and swift collapse. According to the developers' statement, the site is currently "being migrated and simplified," and since reputational damage has already been done, they are in no hurry to restore it. Specialists have thrown all their efforts into improving Highguard and its content.
Message from a Wildlight team member on Discord.