Double Fine and Compulsion Games Embrace Independence From Xbox

WHO:

GamesIndustry.biz - Compulsion Games and Double Fine are the two developers involved.

GamesIndustry.biz - Tim Schafer is associated with Double Fine.

GamesIndustry.biz - Asha Sharma is the CEO of Xbox.

WHAT:

GamesIndustry.biz - Compulsion Games and Double Fine have confirmed their transition to independent management.

GamesIndustry.biz - Compulsion Games will retain the rights to the games Contrast, We Happy Few, and South of Midnight.

GamesIndustry.biz - Xbox announced the loss of 3,200 staff, which is around 20% of the organization.

GamesIndustry.biz - Five studios are being divested, including Double Fine and Compulsion Games.

WHERE:

GamesIndustry.biz - Compulsion Games was founded in a leaky old gramophone factory.

WHEN:

GamesIndustry.biz - The job cuts at Xbox were announced on July 6.

WHY:

GamesIndustry.biz - The changes are part of a deep round of cuts and divestitures by Microsoft.

HOW:

GamesIndustry.biz - The transition to independent management was confirmed through statements released by Compulsion Games and Double Fine.

(UPDATED July 7, 2026 08:09 UTC)

Compulsion Games and Double Fine have confirmed their transition to independent management, with Compulsion retaining the rights to their popular titles, including Contrast, We Happy Few, and South of Midnight. This shift comes as Xbox announced significant job cuts, losing 3,200 staff, which accounts for around 20% of the organization, as part of a broader strategy of deep cuts and divestitures by Microsoft. Asha Sharma, the CEO of Xbox, oversees these changes, while Tim Schafer remains associated with Double Fine, a studio that was founded in a leaky old gramophone factory.