Crossfire developer That's No Moon has confirmed a round of layoffs affecting technical and environmental artists, raising questions about the studio's ongoing AAA project and its future release plans
That's No Moon, the Los Angeles-based studio behind the upcoming narrative-driven title Crossfire, has enacted a round of layoffs affecting an undisclosed number of staff. The move comes as the studio continues work on its first AAA project, with several now-former employees confirming their departures on LinkedIn. Roles impacted reportedly include technical and environmental artists, though the full scope of the cuts has not been detailed by the studio.
Studio Background and Project Status
Founded in 2021 by veterans from Naughty Dog and Infinity Ward, That's No Moon quickly attracted attention for its ambitious plans and experienced leadership. The studio's debut project, Crossfire, was officially revealed at Summer Game Fest 2026 as a single-player, narrative-focused experience set within the world of the established multiplayer shooter. Despite the showcase, Crossfire does not yet have a confirmed release date, and the studio has not provided an update on whether the layoffs will affect the game's development timeline.
Crossfire is being developed for PC, PlayStation 5, and Xbox Series X, and is currently available to wishlist on Steam, the PlayStation Store, and the Microsoft Store. The game's first public showing included an in-depth gameplay demonstration, highlighting its tactical approach and unique mechanics.
Gameplay Features and Narrative Focus
During its Summer Game Fest presentation, That's No Moon showcased Crossfire's 'adaptive cover' system, a mechanic designed to let characters dynamically adjust their stances in response to terrain and enemy positioning. According to game director Jacob Minkoff, this system is intended to reward tactical thinking, stealth, and repositioning, making environmental awareness a core skill for players.
The story centres on two enemy operators, Layla Qassem and Delroy Cross, who are forced into a fragile alliance for survival. Layla's journey begins with a reconnaissance mission in the Atlas Mountains, while Cross, a tier one operator for Global Risk, faces his own challenges during a mission for Sodara Biotech. The narrative aims to explore shifting allegiances and personal beliefs within the established Crossfire universe.
Industry Context and Recent Layoffs
The layoffs at That's No Moon follow a broader trend of studio restructuring across the industry. Last month, Double Fine, known for Psychonauts, laid off around a quarter of its staff after returning to independent status, a move linked to Xbox's recent restructuring efforts. These developments reflect ongoing volatility in the sector, with even well-funded studios facing resource pressures as they approach major release milestones.
While That's No Moon has not commented publicly on the reasons for its staff reductions, the timing raises questions about the studio's production pipeline and resource allocation. For context, other major projects have also faced similar challenges, as seen in the way Square Enix is managing world size and player guidance in its upcoming titles, discussed in this analysis of Final Fantasy 7 Revelation's development approach.
What Remains Uncertain
At present, That's No Moon has not specified how many employees have been affected or whether the layoffs will result in changes to Crossfire's scope or release window. The studio has yet to issue an official statement addressing the situation or outlining its plans for the remainder of the project's development. Players interested in Crossfire can continue to wishlist the game on their preferred platform, but should be aware that the timeline for further updates remains unclear.
Layoffs in game development often occur during periods of shifting priorities or as projects move between production phases. While not always indicative of trouble, such changes can affect team morale, project momentum, and ultimately the delivery of promised features. Players following Crossfire's progress should watch for further communication from That's No Moon regarding the game's status and any potential impact on its release plans.
In the context of modern game development, layoffs and restructuring are not uncommon, especially as studios scale up for major releases or adjust to shifting market conditions. These changes can influence everything from production schedules to the final scope of a game, making transparency and regular updates from developers increasingly important for players tracking anticipated titles.
