That's No Moon Lays Off Staff Amid Crossfire Development
The Los Angeles studio behind the upcoming narrative shooter Crossfire confirmed layoffs on August 6, with technical and environmental artists among those affected.
Another Studio Hit as Layoffs Continue Across Gaming
That’s No Moon, the Los Angeles-based studio currently developing the narrative shooter Crossfire, has laid off an as-yet undetermined number of employees, according to a report from IGN. Now-former staff began posting about the situation on LinkedIn on August 6, and the roles affected appear to have included technical and environmental artists. IGN reached out to the studio for comment.
The news arrives just weeks after the studio made its public debut in a big way. That’s No Moon revealed Crossfire at Summer Game Fest 2026, presenting an in-depth showcase alongside Geoff Keighley that gave players their first real look at what the team has been building. The timing makes the layoffs particularly jarring.
What We Know About That’s No Moon and Crossfire
Founded in 2021, That’s No Moon counts veterans from Naughty Dog and Infinity Ward among its founders. The studio has been working toward a AAA debut, and Crossfire represents exactly that: a single-player, narrative-focused game set within the universe of the long-running Crossfire multiplayer franchise, though this entry zeroes in on two specific characters rather than the broader faction warfare the brand is known for.
Those two characters are Layla Qassem and Delroy Cross. Layla’s story kicks off during what should have been a routine reconnaissance mission in the Atlas Mountains, one that spirals into what the team describes as a harrowing struggle forcing her to confront her rigid worldview. Cross is a tier one operator and elite member of Global Risk who gets pulled into a mission for Sodara Biotech that similarly challenges his beliefs. The two are enemies by faction, but circumstances push them into a temporary, uneasy alliance.
Game director Jacob Minkoff has talked up a mechanic the team calls adaptive cover, in which characters dynamically shift their stances based on the surrounding terrain and nearby enemies. Minkoff described it as something that “fundamentally changes your relationship with the environment and becomes an active skill to master.” The system is designed to reward tactical thinking, stealth, and repositioning rather than static gunplay.
Crossfire is in development for PC, PlayStation 5, and Xbox Series X. It does not have a release date yet, but it is available to wishlist on Steam, the PlayStation Store, and the Microsoft Store.
A Familiar Story Playing Out Again
As IGN noted in its reporting, these layoffs follow a pattern that has become achingly familiar across the industry. Last month, Psychonauts developer Double Fine laid off a quarter of its staff after returning to independent ownership following Xbox’s large-scale restructuring efforts. Studios that have not shipped a game yet, and those mid-development on ambitious projects, have proven especially vulnerable.
For That’s No Moon, the cuts hit at a sensitive moment. The studio spent years operating largely under the radar before finally stepping into the spotlight at Summer Game Fest. Crossfire generated real attention for its premise and its creative team’s pedigree. Losing technical and environmental artists during active development on a game of this scope is a meaningful setback, whatever the internal reasoning turns out to be.
No headcount figure has been confirmed, and the studio had not responded to IGN’s request for comment as of the time of publication.
What is Crossfire, the game being developed by That's No Moon?
Crossfire is a narrative-driven, single-player AAA title revealed at Summer Game Fest 2026. It follows two enemy operators, Layla Qassem and Delroy Cross, who are forced into an uneasy alliance. The game features an 'adaptive cover' mechanic and is in development for PC, PlayStation 5, and Xbox Series X, though it has no official release date yet.
Who founded That's No Moon?
That's No Moon was founded in 2021 by industry veterans from studios including Naughty Dog and Infinity Ward. The studio is based in Los Angeles.
Which roles were affected by the That's No Moon layoffs?
According to IGN, the roles impacted appear to have included technical and environmental artists, based on posts that now-former employees shared on LinkedIn on August 6, 2026.