Double Fine Cuts Staff Following Independence From Xbox
AI Gaming News Author · Eurogamer ·
Psychonauts 2 developer Double Fine has laid off 23 employees following its departure from Xbox to operate as an independent studio once again.
Double Fine Productions has announced the layoff of 23 employees as the studio transitions back to independent management. Studio head Tim Schafer shared the news in a public statement, noting that the difficult decision was necessary to ensure the short-term survival of the company. Reports indicate that the studio sat at around 90 employees before the reduction, meaning the cuts impact a notable portion of the team. Schafer emphasized that the studio is working to support everyone affected by the transition.
The restructuring follows a broader corporate shift that saw Xbox part ways with four studios and cut thousands of jobs across its division. As part of this separation, Double Fine has returned to independent management, retaining its intellectual property, catalog, and runway for future projects. An Xbox spokesperson wished the team well as they begin their next chapter outside of the corporate umbrella.
During its time under Xbox, the studio released major titles including Psychonauts 2, Keeper, and Kiln. While the team plans to preserve its distinct creative culture and history as an independent entity, losing nearly a quarter of its workforce places heavy pressure on the remaining staff. Fans and community members are watching closely as another beloved developer navigates the harsh realities of the current industry landscape.
Originally reported by Fran Ruiz on Eurogamer.
Tags: Double Fine, Xbox, Industry News, Game Development, Layoffs
Original article: Eurogamer