{"id":790420,"date":"2026-07-29T01:46:07","date_gmt":"2026-07-29T01:46:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/790420\/"},"modified":"2026-07-29T01:46:07","modified_gmt":"2026-07-29T01:46:07","slug":"double-fine-announces-layoffs-following-split-from-xbox","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/790420\/","title":{"rendered":"Double Fine Announces Layoffs Following Split From Xbox"},"content":{"rendered":"<p>Psychonauts developer Double Fine Productions was among the <a href=\"https:\/\/gameinformer.com\/2026\/07\/06\/xbox-parts-ways-with-five-studios-over-3000-layoffs-announced\" rel=\"nofollow noopener\" target=\"_blank\">five studios spun off from Xbox<\/a> as part of its ongoing restructuring, and while it (thankfully) avoided closure, the divorce has forced the team to make cuts. Specifically, the studio has announced the departures of 23 staff members.<\/p>\n<p>In a <a href=\"https:\/\/bsky.app\/profile\/doublefine.com\/post\/3mrq3vfqkf22s\" rel=\"nofollow noopener\" target=\"_blank\">post shared on social media<\/a>, Double Fine head\/founder Tim Schafer writes, \u00a0\u201cAs a small, tightly-knit team, these actions are not taken lightly. Only the survival of our studio would ever make us consider such a painful action. Our transition to becoming an independent company also means becoming a size that we can sustain.\u201d Double Fine states it is working with affected staff \u201cas best we can\u201d during their transition.\u00a0<\/p>\n<p>Double Fine was granted independence from Xbox alongside South of Midnight developer Compulsion Games\u00a0earlier this month; both studios retained their IP and game catalogs as part of the split. Xbox also spun off three other studios; Ninja Theory and Undead Labs were sold to unspecified buyers, and Arkane Studios&#8217; fate remains up in the air as it undergoes mandatory consultation in France.\u00a0<\/p>\n<p>Double Fine&#8217;s most recent release is the pottery-themed multiplayer party game <a href=\"https:\/\/gameinformer.com\/xbox-developer-direct\/2026\/01\/22\/double-fine-announces-online-multiplayer-pottery-brawler-kiln\" rel=\"nofollow noopener\" target=\"_blank\">Kiln<\/a>, which launched in April. Under Xbox&#8217;s ownership, the team shipped <a href=\"https:\/\/gameinformer.com\/review\/psychonauts-2\/psychonauts-2-review-well-worth-the-wait\" rel=\"nofollow noopener\" target=\"_blank\">Psychonauts 2<\/a> in 2021 and <a href=\"https:\/\/gameinformer.com\/review\/keeper\/surreal-wonder\" rel=\"nofollow noopener\" target=\"_blank\">Keeper<\/a> in 2025.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Psychonauts developer Double Fine Productions was among the five studios spun off from Xbox as part of its&hellip;\n","protected":false},"author":2,"featured_media":790421,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[74],"class_list":["post-790420","post","type-post","status-publish","format-standard","has-post-thumbnail","category-technology","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/790420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=790420"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/790420\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/790421"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=790420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=790420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=790420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}