Double Fine Productions
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Xbox leadership's words are drowned out by their actions
Despite assurances from Xbox leadership, the company's actions, including mass layoffs and studio closures, paint a grim picture for its talent and future projects. While executives like Asha Sharma mention upcoming games like The Elder Scrolls 6, these words are seen as empty promises contrasting with the reality of job cuts at studios like id Software and Bethesda.
Xbox revenue plunges $1.7bn, with hardware dropping 29% YoY
Microsoft's latest financial results reveal a significant 7% year-on-year decline in Xbox revenue for the full year and 10% in the fourth quarter, primarily driven by a 29% drop in hardware sales. Despite growth in Game Pass, content and services revenue also fell by 10%. The company announced widespread layoffs affecting 4,800 roles, including 1,600 at Xbox, as part of a restructuring aimed at long-term growth, with several studios transitioning to new management or becoming independent.
“Necessary Decisions” Are Being Made to Reset Xbox for Long-Term Growth, Says Microsoft CEO
Microsoft CEO Satya Nadella stated that "necessary decisions" are being made to reset Xbox for long-term growth, citing a 10 percent revenue decline in the last quarter. The company plans to diversify its business across subscriptions, ads, and digital stores, and expand to new ecosystems. This strategy follows recent layoffs and the divestment of four studios: Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs.
Xbox Revenue Fell by 10 Percent in Last Quarter
Microsoft's Xbox division experienced a 10 percent revenue decrease last quarter, coinciding with significant layoffs across the division. While overall Microsoft revenue increased by 18 percent due to cloud services like Azure, the Xbox content and services segment, along with the Windows OEM and Devices division, saw declines. As part of restructuring, Xbox divested four studios: Compulsion Games, Double Fine Productions, Undead Labs, and Ninja Theory.
Double Fine Lays Off 23 Staff Just Weeks After Splitting From Xbox
Double Fine Productions has laid off 23 employees, approximately 25% of its workforce, just weeks after announcing its return to independence from Xbox. Studio founder Tim Schafer stated the decision was necessary for the company's survival and ability to continue operating. The company has pledged to support the affected workers.
Double Fine Productions suffers layoffs weeks after going independent
Double Fine Productions has laid off 23 employees, nearly 25% of its workforce, just weeks after becoming an independent studio following its separation from Xbox. The studio stated the layoffs were necessary for its survival and to adjust to its new size as an independent entity. This follows Xbox's broader restructuring efforts which have also impacted other studios.
Double Fine hit with layoffs after exiting Xbox - "The people we are losing were all important"
Double Fine Productions has laid off 23 employees as it transitions back to an independent studio after exiting Xbox. Studio head Tim Schafer stated the cuts were necessary for the studio's short-term survival. While at Xbox, Double Fine released Psychonauts 2, Keeper, and Kiln.
Double Fine Productions cuts 23 roles as it becomes independent from Xbox
Double Fine Productions has laid off 23 employees, representing 25% of its workforce, following its full separation from Xbox and return to independent management. CEO Tim Schafer stated the cuts were necessary for the studio's survival and sustainability as a smaller team. Xbox confirmed the studio's independence and ownership of its intellectual property and back catalogue.
Evening Reading - July 28, 2026
This edition of Evening Reading from July 28, 2026, covers several gaming news items including an apology from Xbox's CTO for outages, a release date for Nioh 3: Hell Rising DLC Vol. 1, and Atari's partnership for the 2026 Atari World Championships. It also touches on the end of the Marvel Tokon beta, layoffs at Double Fine Productions, and Guillermo del Toro's stance against AI in creative work.
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.
