That’s No Moon, developer of the highly-anticipated VR project Crossfire, has made some devastating cuts to its team. According to multiple LinkedIn posts from former employees, 14 staff members have been laid off, leaving many in the gaming community reeling.
The layoffs are believed to have started on Friday and have continued to mount over the weekend, with affected employees expressing their gratitude for the experience they gained while working at That’s No Moon. “Unfortunately, with my first job in the games industry, I have been hit with layoffs at That’s No Moon,” wrote an associate environment artist. A procedural technical artist followed suit, mentioning being affected by “unexpected layoffs.” Meanwhile, a senior environment concept artist shared that they were “one of the fourteen affected” by the reported layoffs.
That’s No Moon was founded in 2021 with a $100 million investment from publisher Smilegate and has been working on Crossfire since its reveal at Summer Game Fest earlier this year. The studio had big plans for the project, which promises to bring immersive VR experiences to players worldwide. However, it seems that the financial pressures of developing such an ambitious title may have taken their toll.
The layoffs come as a blow not only to the affected employees but also to fans eagerly awaiting Crossfire’s release. With its promising gameplay and stunning visuals, the project had generated significant buzz in the gaming community. The news raises questions about the viability of large-scale VR projects and the financial risks involved in developing such complex titles.
That’s No Moon’s relationship with Smilegate, one of the largest game publishers in the industry, is also under scrutiny. In recent years, Smilegate has faced its own set of challenges, including shutting down its Barcelona studio and investing in other ventures like Absurd Ventures. It remains to be seen how these developments will impact That’s No Moon and its future projects.
The news from That’s No Moon serves as a sobering reminder of the challenges facing the gaming industry, particularly when it comes to VR development. As technology continues to evolve at breakneck speed, studios must adapt quickly to changing market conditions and financial realities. While this news is undoubtedly disappointing for fans and employees alike, it also highlights the importance of innovation and perseverance in the face of adversity.
Looking ahead, the future of That’s No Moon remains uncertain, but one thing is clear: the VR industry will continue to push boundaries and defy expectations, even in the face of setbacks. With Crossfire still on the horizon, fans can only hope that the project will eventually see the light of day, bringing with it a new wave of immersive experiences that will captivate audiences worldwide.
Source: Game Developer XR — 2026-08-11