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Psychonauts

News, coverage and analysis tracking Psychonauts across the outlets.

Latest coverage

newest first, grouped by day
Retro GamerNegative

Xbox parts ways with 4 studios, with South of Midnight and Psychonauts devs going independent as Arkane begins "required consultation" to "review potential strategic options"

Xbox is undergoing a significant restructure, leading to four of its studios becoming independent or finding new ownership. Compulsion Games and Double Fine Productions will transition to independent studios, while Ninja Theory and Undead Labs will be acquired by new owners. Additionally, Arkane Studios is entering a consultation period to review its strategic options.

EurogamerVery negative

Microsoft announces 3200 layoffs and four studio departures in "most significant" Xbox restructuring in history

Microsoft has announced a significant restructuring of its Xbox division, including approximately 3,200 layoffs and the departure of four studios. Compulsion Games and Double Fine Productions will become independent, while Ninja Theory and Undead Labs are seeking new ownership. Arkane Studios is also under review. Xbox CEO Asha Sharma cited business performance and industry challenges as reasons for the changes.

The Sixth AxisVery negative

Rare added to the list of Xbox studios under threat

Rumors suggest that Microsoft is planning significant layoffs across several Xbox studios, including Rare, Bethesda, and Arkane, with some studios potentially facing closure or sale. This follows recent layoffs at Bungie and Microsoft pulling out of a partnership with IO Interactive. The reported motivation behind these potential cuts is a focus on profitability by new Microsoft management.

FZ.seNegative

Rykte: State of Decay 3-utvecklaren Undead Labs riskerar också stängning

Recent reports suggest that Microsoft may be considering closing or selling Undead Labs, the developer of the highly anticipated State of Decay 3. This follows unconfirmed information that Ninja Theory, Double Fine, and Compulsion Games are also facing potential closures or sales. Microsoft is reportedly planning to make these decisions in early July.

Rock Paper ShotgunVery negative

State of Decay studio Undead Labs potentially up for closure, sources claim, with Bethesda and Blizzard also facing layoffs

Microsoft is reportedly planning significant layoffs across its gaming division, potentially including the closure of Undead Labs, the studio behind State of Decay. Bethesda and Blizzard Entertainment are also expected to face substantial job cuts as part of a company-wide "reset." Union workers are negotiating with management to protect jobs or secure severance packages amid these widespread reductions.

Retro GamerNegative

As Xbox studios brace for a "reset," South of Midnight developers from Compulsion Games begin looking for work

Developers from Compulsion Games, the studio behind South of Midnight, are leaving en masse as parent company Xbox Game Studios undergoes a significant business 'reset'. Multiple reports indicate potential layoffs or closures across several Xbox Game Studios, with Compulsion Games reportedly in talks to spin off independently. Several employees have publicly announced they are seeking new opportunities after years with the studio.

Tech RadarVery negative

Amid reports of closures to Ninja Theory and Compulsion Games, Xbox Game Studios CEO Craig Duncan is stepping down from…

Xbox Game Studios CEO Craig Duncan and chief of staff Louise O'Connor are stepping down amid reports of significant layoffs and the closure of studios like Ninja Theory, Compulsion Games, and Double Fine. Duncan, who previously led Rare for 14 years, had been CEO for less than two years. These changes follow a strategic "Xbox reset" outlined by CEO Asha Sharma.

IGNNegative

Xbox Game Pass Soldiers on With June 2026 Wave 2 Lineup Announcement

Microsoft has announced the Xbox Game Pass lineup for June 2026 Wave 2, amidst reports of potential studio closures and mass layoffs affecting developers like Ninja Theory, Double Fine, and Compulsion Games. The company has not yet commented on these reports.

IGNNeutral

Psychonauts Developer Double Fine Responds to Closure Reports With a Single Emoji

Developer Double Fine, known for the Psychonauts series, has responded to reports suggesting its potential closure. The studio addressed the rumors with a single emoji, offering a brief and somewhat cryptic reply to the speculation.

PC GamesNNegative

Psychonauts dev Double Fine responds to reports that Microsoft is shutting down the studio amid Xbox cuts

Reports indicate Microsoft is considering closing Double Fine Productions, along with Compulsion Games and Ninja Theory, as part of cost-cutting measures within its Xbox division. While no official announcement has been made, Double Fine's social media response suggests uncertainty about the studio's future and potential independence.

Rock Paper ShotgunVery negative

Another Xbocalypse begins: Microsoft are reportedly closing or spinning off Double Fine, Ninja Theory and Compulsion

Microsoft's Xbox division is reportedly considering closing or spinning off studios Double Fine, Ninja Theory, and Compulsion Games as part of a broader business restructuring. This follows recent layoffs, game cancellations, and studio closures across Xbox. The affected studios are known for critically acclaimed but not commercially massive titles like Psychonauts, Senua's Saga: Hellblade II, and South of Midnight.

EurogamerVery negative

Microsoft reportedly negotiating closures of multiple Xbox studios, including Psychonauts' Double Fine, South of Midnight's Compulsion and Hellblade's Ninja Theory

Microsoft is reportedly negotiating the potential closure of several Xbox game studios, including Compulsion Games, Double Fine, and Ninja Theory. These studios are in talks to buy back their independence to avoid being shut down. This news follows recent reports of budget cuts and layoffs under new Xbox CEO Asha Sharma.

Nintendo LifeNegative

Multiple Xbox Studios Reportedly In Active Negotiations With Microsoft To Avoid Closure

Multiple Xbox game studios, including Compulsion Games, Ninja Theory, and Double Fine, are reportedly in active negotiations with Microsoft to avoid closure. Some studios may be given the opportunity to go independent or find a new buyer. Employees at Ninja Theory have been informed of potential closure, and Arkane Studios is also reportedly concerned about its future.

PC GamerNegative

Double Fine, Ninja Theory, and more Xbox studios reportedly at risk of closure

Microsoft's Xbox division is reportedly considering closure for several studios, including Double Fine and Ninja Theory, as part of a "reset" under new CEO Asha Sharma. While some studios like Double Fine are in negotiations to spin off, job losses are expected. This comes after a period of significant studio acquisitions by Microsoft, including Bethesda and Activision Blizzard.

Retro GamerVery negative

Double Fine, Ninja Theory reportedly among multiple Xbox studios rushing to negotiate an exit as Microsoft plans more…

Microsoft's Xbox division is reportedly planning further studio closures and restructuring, with Double Fine, Ninja Theory, and Compulsion Games in negotiations to spin off independently. New Xbox CEO Asha Sharma and CCO Matt Booty have indicated the current business model is unsustainable, leading to expected layoffs and studio cuts, following the recent closure of Tango Gameworks.

IGNVery negative

Ninja Theory and Double Fine Also Reportedly Under Threat of Closure as Xbox Studios Fight for Survival

Ninja Theory and Double Fine are reportedly facing potential closure as Microsoft's Xbox division undergoes significant cuts. These studios, known for Hellblade and Psychonauts respectively, are among those fighting to survive amidst the ongoing restructuring.

Push SquareNegative

Three Xbox Studios at Risk of Closure, in Talks to Become Independent

Reports indicate that three Xbox first-party developers, Compulsion Games, Double Fine, and Ninja Theory, are at risk of closure and are in negotiations with Microsoft to become independent studios. This news follows recent speculation about potential studio closures within Xbox Game Studios, with CEO Satya Nadella emphasizing the need for Xbox to become a sustainable business.

Push SquareNegative

Several Xbox Studios at Risk of Closure, in Talks to Become Independent

Several Xbox first-party studios, including Compulsion Games, Double Fine, and Ninja Theory, are reportedly at risk of closure and are in negotiations with Microsoft to spin off as independent entities. This news follows comments from CEO Satya Nadella about Xbox needing to become a sustainable business. Compulsion Games' title 'South of Midnight' was recently released on PlayStation 5.

Games IndustryNegative

Wizards of the Coast writes to staff to explain "how union representation works" as studio prepares to vote to unionize

Wizards of the Coast has communicated with staff about the implications of union representation as employees prepare to vote on unionizing with the Communication Workers of America. The company stated that all current benefits and perks would be subject to negotiation, potentially resulting in changes to existing terms. The vote is scheduled with the National Labor Relations Board for June 2.

Monster VineNegative

Kiln Review – Double Fine’s Latest Has Charm but Limited Depth

Kiln, Double Fine's latest offering, features a charming art style and satisfying pottery-making mechanics, but its multiplayer-focused gameplay loop lacks depth and variety. The team-based "Quench" mode, while occasionally thrilling, becomes repetitive due to a limited number of stages and content, ultimately holding the game back despite its creative premise.