Psychonauts
News, coverage and analysis tracking Psychonauts across the outlets.
Latest coverage
Double Fine cuts staff, Xbox's revenue decline, and Leon Kennedy pays off - Patch Notes #63
Double Fine has laid off 23 employees following its transition to independence from Xbox. Meanwhile, Xbox reported a $1.7 billion revenue decline for fiscal year 2026, attributed to decreased content, services, and console sales. The article also touches on the erosion of institutional knowledge due to layoffs and the continued sales success of Capcom's Resident Evil series.
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 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.
On Sale
Several games are currently on sale on Steam, with significant discounts available. Psychonauts is 90% off, Forever Skies is 60% off, Stoneshard is 35% off, and Drug Dealer Simulator 2 is 51% off.
Double Fine is independent again, but they’ve had to make layoffs
Double Fine has become an independent studio again, branching off from Xbox. This transition involved layoffs affecting 23 team members, which studio head Tim Schafer stated was necessary for the studio's survival and to achieve a sustainable size. An Xbox spokesperson confirmed Double Fine's full divestment, with the studio retaining its IP and catalog.
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.
Xbox Speaks Out After Double Fine Lays Off 25 Percent of Staff in Transition to Independent Status
Double Fine, known for the game Psychonauts, has laid off 25.6% of its staff. This comes three weeks after Xbox revealed its own significant restructuring efforts. The studio is transitioning to an independent status.
After escaping Xbox, Double Fine lays off 23 people as Tim Schafer says "only the survival of our studio would ever make us consider such a painful action"
Double Fine Productions has laid off 23 employees as it transitions back to an independent studio after years under Xbox ownership. Founder Tim Schafer stated the decision was made for the studio's survival and that they are committed to supporting the affected staff. The layoffs represent roughly a quarter of the studio's workforce.
Summary: what's happening at Xbox?
Xbox announced a major restructuring involving 3,200 job cuts, with 1,600 immediate layoffs, primarily affecting ZeniMax studios like Bethesda and id Software. Several studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, are being sold off or spun out as independent entities. This move aims to refocus on high-earning franchises and improve profit margins, impacting the development of upcoming titles like The Elder Scrolls 6 and potentially State of Decay 3.
Zenimax omorganiseras för att fokusera på sina stora varumärken
ZeniMax Media is undergoing a significant restructuring to concentrate on its major franchises like The Elder Scrolls, Fallout, Wolfenstein, Doom, and Quake. This reorganization follows recent layoffs at Xbox and involves some studios becoming independent or being sold, though ZeniMax itself retains its studios.
Comings and Goings
Following recent layoffs at Xbox, Double Fine and Compulsion Games have confirmed their studio statuses and ability to retain franchises like Psychonauts. A union has also launched a hardship fund to support laid-off developers.
Xbox Layoffs 2026: What Microsoft's Reset Means for Average Gamers
Microsoft's Xbox division has undergone a massive restructuring, cutting approximately 3,200 jobs in fiscal year 2027 and shuttering or spinning off five studios, including Ninja Theory and Arkane Lyon. This move comes despite Microsoft's overall profitability, with Xbox reportedly struggling with low profit margins and a failed attempt to achieve a 30% accountability margin. The article analyzes the business decisions, including Game Pass accounting and price hikes, that led to these layoffs and discusses the implications for gamers, including potential changes to hardware strategy and game exclusivity.
Xbox acquisitions have been a disaster: "In a typical year, we lost 64 cents for every dollar we invested"
Xbox CEO Asha Sharma revealed that Microsoft's aggressive acquisition strategy has resulted in significant financial losses, with the company losing 64 cents for every dollar invested in typical years since 2018. In response to this unsustainable model, Xbox is undergoing a reset, leading to layoffs and the divestment of several studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, while others like Arkane Studios are reviewing strategic options.
Microsoft needs to "reset Xbox," says Asha Sharma, as the company lays off 3,200 employees
Microsoft's Xbox division is undergoing significant restructuring, with approximately 3,200 employees being laid off throughout the 2027 fiscal year, including 1,600 immediately. CEO Asha Sharma stated the business is not healthy and operating at lower margins than comparable companies. Several studios, including Compulsion Games and Double Fine Productions, will transition to independent management, while Ninja Theory and Undead Labs are set to be acquired by new owners.
Double Fine and Compulsion Confirm Status Following Xbox Cuts, Get to Keep Franchises Such as Psychonauts and South of Midnight
Following significant layoffs by Xbox, Double Fine and Compulsion Games have confirmed they will continue as independent studios. Both companies will retain ownership of their respective franchises, including Psychonauts and South of Midnight.
Xbox cuts 3,200 staff as four studios to exit Microsoft – Arkane under review
Microsoft has announced significant layoffs affecting approximately 3,200 employees within its Xbox division, with 1,600 staff being let go immediately. Four studios, including Ninja Theory and Undead Labs, are becoming independent or being sold off, while Arkane Lyon's future is under review. This restructuring follows a period of rapid developer acquisitions and aims to refocus Xbox's business strategy.
Xbox are parting ways with Double Fine, Arkane, Undead Labs, Compulsion, and Ninja Theory in the course of thousands of layoffs
Microsoft has announced significant layoffs affecting 3200 employees and is parting ways with five Xbox-owned studios: Double Fine, Arkane, Undead Labs, Compulsion Games, and Ninja Theory. Some studios will become independent or find new ownership, while Arkane's future is uncertain. CEO Asha Sharma cited rising costs, underperforming acquisitions, and a challenging industry landscape as reasons for the "reset."
Microsoft confirms 3200 layoffs and four studio departures
Microsoft has confirmed significant layoffs affecting approximately 3,200 employees across its Xbox business, including 1,600 on the day of the announcement. Four studios, Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, will either become independent or find new ownership, while Arkane Studios faces strategic review. Xbox CEO Asha Sharma cited slower-than-expected growth in Game Pass, multi-platform strategies, and content portfolio as reasons for the restructuring, which will also involve reducing management layers.
Xbox confirms mass layoffs, Double Fine Productions and Compulsion Games to go independent
Xbox CEO Asha Sharma announced significant changes, including layoffs affecting 3,200 employees and four studios becoming independent or sold. Compulsion Games and Double Fine Productions are now independent, retaining their IP rights, while Ninja Theory and Undead Labs have been sold to new owners. Sharma cited an unhealthy business model with low profit margins as the reason for these drastic measures.
Xbox cutting 3,200 jobs and parting ways with Double Fine, Compulsion, Ninja Theory, and Undead Labs
Microsoft has initiated a significant restructure of its Xbox division, eliminating 3,200 jobs and parting ways with four studios: Double Fine, Compulsion Games, Ninja Theory, and Undead Labs. New Xbox CEO Asha Sharma stated the cuts are necessary due to underperforming bets on Xbox Game Pass and multiplatform releases, as well as a severe hardware crisis impacting component prices. The company aims to streamline operations, reduce management layers, and foster a more efficient development environment.
