Double Fine Productions
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Double Fine Announces Layoffs For 23 Employees Following Xbox Split
Double Fine Productions, developer of Psychonauts, has laid off 23 employees following its separation from Xbox. Studio founder Tim Schafer stated the move was necessary for the studio's sustainability as an independent company. Xbox confirmed the return of intellectual property and runway for future games to Double Fine and other divested studios like Compulsion Games, Ninja Theory, and Undead Labs.
Comings and Goings
Double Fine Productions has laid off 25 percent of its staff following its transition back to independent status after splitting from Xbox. Xbox has commented on the situation, acknowledging the layoffs that occurred during this period of change for the studio.
After gaining independence from Xbox, Double Fine are laying off a quarter of their staff
Double Fine Productions has laid off 23 employees, approximately 25% of its staff, following its recent split from Xbox and return to independent operations. Studio head Tim Schafer stated the decision was made for the survival of the studio as it transitions to a sustainable size. Xbox confirmed Double Fine is now fully independent and manages its own operations.
Double Fine Productions confirms layoffs after Xbox divestment
Double Fine Productions has confirmed layoffs affecting 23 employees as the studio seeks to ensure its future following its divestment from Xbox. Studio head Tim Schafer announced the staff reductions in a social media message. The studio recently released the party brawler Kiln.
'Only the survival of our studio would make us consider such a painful action': Tim Schafer announces Double Fine layoffs just 3 weeks after Xbox cut it loose
Double Fine Productions has laid off 23 employees just three weeks after Xbox allowed the studio to become independent. Studio head Tim Schafer stated the layoffs were necessary for the studio's survival, emphasizing the need to scale down to a sustainable size. This move follows a broader restructuring by Xbox that also saw Compulsion Games spun off.
Compulsion Games seeks new partnerships following spin-out from from Xbox
Compulsion Games has announced its return to independent development after being spun out from Xbox. The studio, known for South of Midnight, is now seeking new partnerships to leverage its team's talent and creativity. Compulsion Games retains the rights to its previous titles, including Contrast, We Happy Few, and South of Midnight.
South of Midnight Developer is Looking for Studios to Collaborate With
Compulsion Games, now an independent studio after being released from Xbox, is seeking collaboration partners for its next project. The studio, which developed the BAFTA and Peabody Award-winning game South of Midnight, aims to leverage its talent and expertise while securing funding. This announcement follows recent layoffs at Xbox and the independent transitions of other former Xbox studios like Undead Labs, Double Fine Productions, and Ninja Theory.
Xbox After The Layoffs: Studios Left And What They’re Making
Xbox has undergone significant restructuring, including layoffs and the divestment of five studios, as it aims to increase profitability and focus on major intellectual properties. This shake-up impacts numerous development teams and projects across Xbox Game Studios, Activision, Blizzard, and Bethesda, with a renewed focus on core franchises and a shift in business strategies like the exclusion of Call of Duty from Xbox Game Pass day-one launches.
17 years later, Minecraft is finally adding somewhere to sit
Minecraft is introducing craftable cushions and new straw beds in its latest preview build, allowing players new ways to rest. These additions come as Mojang, an Xbox-owned studio, is impacted by significant layoffs affecting numerous gaming companies.
Xbox retreats again – but to where? | Opinion
Xbox CEO Asha Sharma announced significant layoffs affecting thousands of employees across various studios as part of a company 'reset' to focus on profitable franchises. This move raises questions about the future of Xbox's first-party strategy, its Game Pass subscription service, and the upcoming console generation, particularly given the high cost of components and the blurring lines between PC and console gaming.
Xbox setting Compulsion and Double Fine free is the only good thing to come out of Microsoft's layoffs
Microsoft's recent layoffs, affecting thousands of employees, have led to Xbox allowing Compulsion Games and Double Fine Productions to become independent. While the mass job losses are devastating, this move is seen as a positive step for fostering innovation in the indie game space, freeing these studios from the constraints of triple-A development.
While several Xbox studios regained independence or found new owners yesterday, Arkane's staff must negotiate their own future
Xbox has announced significant restructuring, spinning off five studios and implementing widespread layoffs. While some studios regain independence or find new owners, the fate of Arkane Studios, specifically Arkane Lyon in France, remains undecided as negotiations involving Microsoft, studio management, and employee representatives are ongoing. This situation highlights differing labor law protections between France and the US, with Arkane Lyon's future potentially involving sale, management buyout, or closure.
Xbox Moves On From 4 Studios and Layoffs Off Thousands of Others
Xbox has announced significant restructuring, impacting over 1600 employees and planning for another 1600 over the next two fiscal years. Four studios—Double Fine Productions, Compulsion Games, Ninja Theory, and Undead Labs—will become independent or be acquired by new entities, retaining their intellectual property. Numerous other studios, including Zenimax Online, Id Software, Obsidian, and Bethesda Game Studios, are also undergoing substantial layoffs as Xbox refocuses on its major franchises like Call of Duty, The Elder Scrolls, Fallout, Halo, and Minecraft.
Evening Reading - July 6, 2026
The video game industry is facing significant challenges, with Microsoft confirming mass layoffs that will lead to Double Fine Productions and Compulsion Games becoming independent. Xbox has appointed Helen Chiang, head of Mojang Studios, as its first Chief Operating Officer. Additionally, Nintendo plans to discontinue original Switch consoles in Europe in 2027, while Microsoft is being sued in Wisconsin over data center practices.
How Leaving XBOX Impacts Studios
Following recent announcements of layoffs at Xbox, Double Fine Productions and Compulsion Games have become independent studios once again. Double Fine Productions has released a statement regarding this change on Bluesky.
State of Decay 3 Studio Confirms Development is Continuing as it Transitions Out of Xbox
Undead Labs has confirmed that development on State of Decay 3 is continuing as the studio transitions away from Xbox. While details about the new ownership are scarce, the studio expressed optimism about the game's future. This news comes amidst significant layoffs and studio sales within Xbox, affecting other developers like Ninja Theory and Compulsion Games.
Xbox CEO Says “We Simply Spread Ourselves Too Thin” Following Layoffs
Xbox CEO Asha Sharma stated that the division "spread ourselves too thin" by making numerous unsuccessful bets, leading to recent layoffs affecting approximately 1,600 employees. As part of a restructuring, four studios are being let go, with Compulsion Games and Double Fine Productions becoming independent, and Undead Labs and Ninja Theory being sold. Sharma also confirmed further job cuts are planned and announced organizational changes, including a new COO, Helen Chiang.
The Gaming Industry Is Eating Itself Alive
Xbox is undergoing a massive restructuring, including 3,200 layoffs, impacting numerous studios and divisions like Activision, Bethesda, and Blizzard. While some studios regain independence and first-party projects remain safe for now, the article criticizes Xbox's overall strategy, citing Game Pass's performance and declining hardware revenue. The piece also touches on PlayStation's similar issues with digital ownership and preservation, painting a bleak picture for the future of gaming costs and ownership.
The games industry reacts to Xbox layoffs: 'We are clearly at a turning point'
Microsoft's Xbox division has announced significant layoffs, impacting approximately 3,200 employees and leading to the closure or restructuring of four game studios. This move has drawn widespread reactions from industry figures, expressing shock, sorrow, and anger, with many calling it a turning point for the game industry. The layoffs occur amidst Microsoft's continued investment in artificial intelligence, a decision that has drawn criticism for its perceived prioritization over game development talent.
Report: The “majority” of ID software and up to half of Zenimax online have lost their jobs
Reports indicate significant layoffs across several Xbox-owned studios, including a majority of ID Software and up to half of ZeniMax Online Studios. These cuts affect teams working on titles like The Elder Scrolls Online, with roadmaps expected to shift. Other studios like Compulsion Games and Double Fine are reportedly going independent.
