Following its split from Xbox, Psychonauts developer Double Fine Productions has announced layoffs. In a recent statement, founder Tim Schafer confirmed that 23 employees were affected and that “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.” He noted that the individuals in question “were all important,” and Double Fine is “committed to supporting each affected person as best as we can.”
According to Bloomberg’s Jason Schreier, the studio previously consisted of around 90 employees. These layoffs would effectively amount to a 25.6 percent reduction. Xbox also chimed in following the announcement, stating to Kotaku, “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.”
That “runway” amount, which CEO Asha Sharma confirmed for the departing studios, remains unknown. Double Fine’s last major release was Kiln, which reportedly disappointed, and with game designer Ben Johnson being laid off, the multiplayer title’s fate may have been sealed.
Of course, nothing has been revealed about the studio’s next project, so stay tuned for more updates. Besides Double Fine Productions, Xbox also divested Compulsion Games (South of Midnight), Ninja Theory (Senua) and Undead Labs (State of Decay). While two of those studios were acquired by unknown parties, Undead Labs’ new owner will reportedly be revealed this Summer. It could also allegedly result in State of Decay 3 skipping Game Pass.
Of course, all of this is separate from Xbox laying off 1,600 employees across current studios, including id Software, ZeniMax Online Studios, and Bethesda. An additional 1,600 is planned for the current fiscal year, and there’s concern that Blizzard Entertainment, despite multiple projects in development, could be hit.
