The gaming industry continues to face turbulent times as another wave of layoffs has struck a prominent development studio. That’s No Moon, the Los Angeles-based developer behind the highly anticipated AAA title Crossfire, has reportedly terminated an undetermined number of employees, adding to the growing list of studios affected by workforce reductions in 2024 and beyond. Former employees began sharing news of their departures on LinkedIn profiles starting August 6, confirming that the layoffs had impacted various roles within the company, including technical and environmental artists who had been working on the studio’s flagship project.

The news comes as a significant blow to a studio that had positioned itself as a rising star in the gaming industry. That’s No Moon was founded in 2021 by a group of highly respected industry veterans who had previously worked at some of the most celebrated development houses in gaming, including Naughty Dog, the creators of The Last of Us and Uncharted franchises, and Infinity Ward, the studio responsible for the Call of Duty: Modern Warfare series. The pedigree of its founding team had generated considerable excitement about the studio’s potential to deliver innovative and visually stunning gaming experiences.

A Promising Studio Faces Industry Headwinds

That’s No Moon first captured widespread attention when it unveiled its debut project, Crossfire, during Summer Game Fest 2024. The announcement trailer showcased impressive visuals and hinted at an ambitious scope that fans had come to expect from a team with such an impressive collective resume. The studio had secured significant backing and was seen as one of the most promising new entrants in the AAA gaming space. However, the current layoffs suggest that even well-funded studios with experienced leadership are not immune to the economic pressures currently affecting the broader gaming industry.

The layoffs at That’s No Moon are part of a much larger pattern that has devastated the gaming workforce over the past two years. Since early 2023, tens of thousands of gaming industry professionals have lost their jobs as companies large and small have implemented cost-cutting measures. Major publishers including Microsoft, Sony, Electronic Arts, and Ubisoft have all announced significant workforce reductions, while smaller independent studios have struggled to secure funding in an increasingly cautious investment environment. Analysts point to several factors driving these cuts, including post-pandemic corrections after a period of aggressive hiring, rising development costs, and changing consumer spending habits.

Impact on Development and Industry Trends

The specific impact of these layoffs on Crossfire’s development timeline remains unclear, as That’s No Moon has not issued an official statement regarding the workforce reduction or how it might affect the project’s progress. Technical and environmental artists play crucial roles in AAA game development, responsible for creating the visual foundations and detailed worlds that players explore. Losing experienced professionals in these areas could potentially slow production or require the remaining team to absorb additional responsibilities during an already demanding development cycle.

Industry observers note that the gaming sector’s current struggles represent a significant correction following years of expansion. During the COVID-19 pandemic, gaming companies experienced unprecedented growth as locked-down consumers turned to video games for entertainment. This led to aggressive hiring and expansion across the industry. However, as consumer behavior normalized and economic conditions tightened, many companies found themselves overstaffed relative to their revenue projections. The resulting layoffs have affected professionals at all levels, from entry-level positions to senior leadership roles, creating uncertainty throughout the industry.

Looking Ahead: Challenges and Resilience

For the affected employees at That’s No Moon, the immediate future involves navigating an increasingly competitive job market saturated with talented professionals seeking new opportunities. Many laid-off workers have used platforms like LinkedIn to share their experiences and connect with potential employers, while industry support networks have mobilized to help displaced workers find new positions. The gaming community has largely rallied around affected workers, recognizing that layoffs often reflect business decisions rather than individual performance issues.

Despite these challenges, the gaming industry has historically demonstrated resilience and the ability to bounce back from difficult periods. New studios continue to form, often founded by professionals displaced from larger companies who bring valuable experience and fresh perspectives to their new ventures. Whether That’s No Moon can successfully navigate this difficult period and deliver on the promise of Crossfire remains to be seen, but the studio’s fate will likely serve as another indicator of the industry’s overall health in the months and years ahead.