Double Fine Productions, the developer behind Psychonauts 2 and The Forgotten City’s Keeper, is laying off staff following its exit from Xbox Game Studios. The layoffs come about a month after Microsoft announced job cuts affecting its Xbox division and said it would part ways with four studios. Founder Tim Schafer confirms that Double Fine has laid off 23 people, describing the move as necessary for the studio’s short-term survival. Eurogamer reports that the layoffs are intended to ensure the company remains operational in the near term and notes Schafer’s account that the affected employees are important to the studio.
The reports frame the decision as part of the broader changes associated with the studio’s separation from Xbox, rather than as a specific project-related termination. No details are provided across the sources about which roles are affected beyond the confirmed headcount, nor are future plans for staffing or projects fully outlined.
