Highguard's abysmal launch and rapidly declining player counts are well documented at this point, but it recently came to light that Wildlight was not the indie darling it was portraying itself to be. According to a report by Game File , Wildlight, and by extension Highguard's development, was being funded by TiMi Studio Group—whose Montreal studio working on unannounced open-world AAA games was recently shut down . Now, Bloomberg 's Jason Schreier reports that Tencent pulled funding from Wildlight shortly after the game's launch, with management breaking the news of the pulled Tencent money to staff in a meeting on February 11.

This sudden loss of funding may explain why Wildlight was forced to lay off as much as 80% of the Highguard dev team so soon after the game's launch—the studio simply no longer had the financial backing to work on a game that was not an immediate success. According to inside sources, staff were under the impression that continued funding would only be guaranteed if certain player count and retention metrics were met. Former Wildlight developers put the onus for the game's failure on management, citing hubris and a misguided belief that Wildlight would be able to emulate Apex Legends's success, since the management team had previously been involved in that launch.