Psychonauts 2 Studio Double Fine Hit With Layoffs Amid Divestiture From Xbox

Twenty-three employees have been laid off at Double Fine, a reduction reported by IGN as affecting 25 percent of the studio's total staff. The announcement arrives three weeks after the organization divested from Xbox and returned to independent status. Tim Schafer stated that the decision was driven by the necessity of ensuring the studio's survival.

PC Gamer, VGChartz, The Verge, and Kotaku have tracked the transition as the studio navigates its new independent operation. Microsoft has provided a statement regarding the situation, while leadership at Double Fine characterized the layoffs as a painful action.

Details concerning the specific departments affected or the precise financial impact of the divestiture on the studio's ongoing operations are not provided in current reporting. While the studio has confirmed the scale of the job losses, the long-term operational structure of the newly independent company is currently unconfirmed.