Double Fine is independent again, but they’ve had to make layoffs

Psychonauts developer Double Fine has gone independent again this week, branching off once more from Xbox to go it alone. But they’ve had to make layoffs to do so, with Tim Schafer’s message on social media confirming that 23 team members are affected.

“Only the survival of our studio would ever make us consider such a painful action,” Tim writes. “Our transition to becoming an independent company also means becoming a size that we can sustain.”

https://bsky.app/profile/doublefine.com/post/3mrq3vfqkf22s

Speaking to Kotaku, an Xbox spokesperson confirmed that Double Fine is now fully divested from Xbox and MIcrosoft. “Double Fine fully returned to independent management earlier this week, with their IP, catalog, and runway for their next games. As they begin their next chapter as an independent studio, we look forward to seeing what they create next.”

Even with the layoffs, Double Fine is, in some ways, one of the lucky ones. it’s been a tumultuous few months at Xbox, with the swell of positivity following Summer Game Fest dashed just a week later as rumours of massive layoffs and studio closures grew. In the end, Double Fine, Compulsion Games, Ninja Theory and Undead Labs were all set for sale or independence, while the options are also being explored for Arkane Lyon. However, 1,600 employees were let go from the studios remaining at Xbox, and there’s plans for 1,600 more, as a sharp pivot towards more inter-studio collaboration at Bethesda and Obsidian have emerged.

via Kotaku

Tags: Double Fine, Psychonauts, Psychonauts 2, Xbox