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Double Fine Announces Layoffs Following Split From Xbox

July 29, 2026
in Featured News
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Psychonauts developer Double Superb Productions was among the many 5 studios spun off from Xbox as a part of its ongoing restructuring, and whereas it (fortunately) prevented closure, the divorce has compelled the group to make cuts. Particularly, the studio has introduced the departures of 23 workers members.In a put up shared on social media, Double Superb head/founder Tim Schafer writes,  “As a small, tightly-knit group, these actions are usually not taken evenly. Solely the survival of our studio would ever make us take into account such a painful motion. Our transition to turning into an impartial firm additionally means turning into a dimension that we will maintain.” Double Superb states it’s working with affected workers “as greatest we will” throughout their transition. Double Superb was granted independence from Xbox alongside South of Midnight developer Compulsion Video games earlier this month; each studios retained their IP and sport catalogs as a part of the break up. Xbox additionally spun off three different studios; Ninja Idea and Undead Labs had been offered to unspecified patrons, and Arkane Studios’ destiny stays up within the air because it undergoes necessary session in France. Double Superb’s most up-to-date launch is the pottery-themed multiplayer get together sport Kiln, which launched in April. Beneath Xbox’s possession, the group shipped Psychonauts 2 in 2021 and Keeper in 2025. 



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