Developer of games such as Double Fine. psychopath franchisecruel legendAnd most recently kilnWe are reducing approximately one-third of our total staff through layoffs. This movement psychopath The developer is parting ways with Xbox.
Double Fine was originally acquired by Xbox in 2019. The studio successfully launched three titles during its time on Xbox, including the long-awaited title. Psychonaut 2plus concierge and kiln. In June 2026, Double Fine responded to rumors of a possible closure with Emoji Only, but it was later revealed that the studio would become independent again.
Double Fine Productions reveals layoffs
Double Fine Productions announced that it has laid off 23 employees due to necessary layoffs. In a message shared across official social media channels, Double Fine founder Tim Schafer explained that the team is close-knit and the decision to let members go was not taken lightly. But it became necessary for the entire Double Fine to survive. Now that Double Fine is no longer supported by Xbox, it seems the studio can't maintain the same size team, which used to be around 90 people. Schafer said the studio will provide as much support as possible to those affected and that the game studio will miss them.
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This development is the latest in the fallout from Xbox's restructuring. Compulsion Games is shutting down and becoming independent again, like Double Fine, while Undead Labs and Ninja Theory have “inked a deal to join new ownership.” Xbox overall is experiencing about 3,200 layoffs, raising concerns about which studios remain at Xbox and how all of these cuts will affect their business. Developers Zenimax Media claimed that the studio lost a ton of knowledge and expertise in that cut, and Bethesda and Obsidian reportedly tried to bring in that piece after the fact.
Double Fine's losses were largely due to its departure from Xbox, but game development as a whole has suffered quite a bit in recent years. Numerous studios, publishers, and company owners have enacted significant cuts to their teams following successful game releases. In other cases, game development studios have closed entirely. Current difficulties due to parts shortages and high costs for components like RAM will also have an impact, delaying systems like the Steam Machine and potentially causing headaches for future consoles like the next-generation PlayStation and Xbox systems.
For now, it remains to be seen what the future holds for Double Fine. The studio's latest game, kilnIt received generally positive reviews from critics and currently has a mostly positive score on Steam. However, the game also struggled to find an audience, with only 193 unique users on launch day. Those numbers have since plummeted further, with the game's 24-hour peak player count on Steam at just 13 at the time of publication. However, despite the team's loss and recent launch difficulties, Double Fine has previously found success through crowdfunding, so fans can get there if they need to.
- released
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April 23, 2026
- ESRB
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Anyone 10+ / Fantasy violence, crude humor, language, user interaction
- publisher
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Xbox Game Studios
- multiplayer
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online multiplayer
