Psychonauts studio Double Fine Productions laid off a quarter of its staff yesterday, three weeks after Xbox announced a massive restructuring that included laying off 3,200 employees of its own and spinning off four studios, including Double Fine.
Double Fine confirmed the layoffs impacted 23 staff members. “As a small, tightly-knit team, these actions are not taken lightly,” writes Double Fine founder Tim Schafer. “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.”
In a statement to Kotaku, Xbox noted that “Double Fine fully returned to independent management earlier this week, with their IP, catalog, and runway for their next games. As they begin their next chapter as an independent studio, we look forward to seeing what they create next.”
Double Fine was founded in 2000 and has developed dozens of games, most notably the Psychonauts series. It’s also the co-founder of Day of the Devs, a nonprofit organization that promotes underrepresented game developers through events and showcases, including tie-in events with Summer Games Fest and GDC.
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Double Fine was acquired by Microsoft in June 2019. Under Microsoft’s ownership, the studio released Psychonauts 2, Keeper, and Kiln. In addition to Double Fine, Microsoft also cut ties with Compulsion Games, Ninja Theory, and Undead Labs.
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I’m a New York-based writer currently serving as PCMag’s Editorial Intern. I cover the impact of technology and internet culture on our daily lives, with a specialization in video games and cultural criticism.
I have written for Kotaku, The A.V. Club, Unwinnable, Aftermath, and more. In addition, I have a formal background in video game development and visual design. You can find all of my work on my website.
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