Double Fine Faces Staff Cuts After Xbox Partnership Ends

WHO:

Game Informer - Double Fine Productions, a studio founded by Tim Schafer and other ex-LucasArts developers.

Kotaku - Xbox, the former owner of Double Fine.

WHAT:

Game Informer - Double Fine announced the layoffs of 23 staff members.

Kotaku - Xbox spokesperson stated that Double Fine fully returned to independent management and retained their IP and game catalog.

WHERE:

Kotaku - Double Fine is based in San Francisco.

WHEN:

Game Informer - The separation from Xbox occurred earlier in the month.

Kotaku - Double Fine's most recent release, the game Kiln, launched in April.

WHY:

Game Informer - The layoffs were attributed to the necessity of survival following the separation from Xbox.

Kotaku - The separation was part of a massive shake-up at Xbox due to the division's lack of profitability and overstretching by acquiring studios.

HOW:

Game Informer - Double Fine is working with affected staff during their transition to independence.

Kotaku - The transition to becoming an independent company means Double Fine must adjust to a sustainable size.

(UPDATED July 29, 2026 01:28 UTC)

Double Fine Productions, the studio founded by Tim Schafer and other ex-LucasArts developers, has announced the layoffs of 23 staff members as they transition back to independent management after separating from Xbox earlier this month. The Xbox spokesperson confirmed that Double Fine has retained their intellectual property and game catalog, but the layoffs were deemed necessary for survival following the separation due to Xbox's recent struggles with profitability. Based in San Francisco, Double Fine is currently working with affected staff to help them during this transition while adjusting to a sustainable size as an independent company.