Double Fine was one of five studios that XBOX let go in its massive restructure earlier this month. Arkane, Ninja Theory, Compulsion Games, Undead Labs, and Double Fine were affected. Some developers were transitioning to new ownership, while others went independent. Double Fine was one of the developers that went independent, or in Double Fine’s case, went back to independence. However, despite their renewed freedom, it seems like they were not able to stay away from layoffs. Double Fine has announced today that they are laying off 23 members of its staff.
— Double Fine (@doublefine.com) July 28, 2026 at 12:01 PM
Studio Head Tim Schafer released a statement:
“Today, Double Fine Productions let go of 23 members of our staff.
As 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.
The people we are losing were all important. They all made an impact on our games and culture, and they will be missed.
We are committed to supporting each affected person as best as we can, and we thank them for their hard work and commitment to the creative spirit we cherish here at Double Fine.”
Double Fine was created back in 2005 and has made a name for itself creating experimental, quirky games that many of which were birthed out of internal studio game jams. Developers would make something and present it to the rest of the team. They were acquired by XBOX in 2019 and developed Psychonauts 2, Keeper, and Klin during their tenure at XBOX. XBOX head Asha Sharma said that Double Fine would retain its owned IP and catalog post-separation.
“Double Fine fully returned to independent management earlier this week, with their IP, catalog, and runway for their next games,” and XBOX spokesperson said. “As they begin their next chapter as an independent studio, we look forward to seeing what they create next.”