Double Fine, the developer responsible for games like the Psychonauts franchise, Brutal Legend, and most recently Kiln, is cutting about a third of its overall staff in layoffs. The move comes following the reveal that the Psychonauts developer would be parting ways with Xbox.
Double Fine was originally bought by Xbox back in 2019. The studio successfully released three titles during its time with Xbox, including the long-awaited Psychonauts 2, plus Keeper and Kiln. Back in June 2026, Double Fine responded to rumors of being potentially shut down with just an emoji, but it was later revealed that the studio was going independent again, instead.
In a letter to employees, Xbox CEO Asha Sharma confirms the single biggest staff reduction event for the company as well as four studios leaving.
Double Fine Productions has announced that the team let go of 23 staff members in necessary layoffs. In a message shared on official social media channels, Double Fine founder Tim Schafer explained that the team is tightly-knit, and that the decision to let members go was not made lightly. However, it became necessary in order for Double Fine as a whole to survive. Now that Double Fine no longer...
