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Engadget
Double Fine lays off about a third of its employees
Double Fine, known for its beloved titles like Psychonauts and Grim Fandango, has laid off 23 of its approximately 90 employees. The company faced this painful decision following a series of job cuts throughout the gaming industry linked to Xbox and Microsoft. Despite releasing successful games recently, the studio's shift toward independence, after being under Xbox Game Studios since 2019, comes in a challenging economic environment. The action highlights the ongoing turbulence in the gaming sector, where studios are making tough choices to ensure their survival amidst financial pressures.
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Published 28 Jul 2026, 20:25 UTC1 min read
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Summary
TL;DR
- Double Fine has laid off about a third of its employees, totaling 23 layoffs.
- The layoffs are part of a larger trend affecting the gaming industry linked to Xbox.
- Tim Schafer emphasized survival as a key reason for the layoffs.
- Double Fine plans to become independent again after years with Xbox Game Studios.
- Past successful games include Psychonauts and Grim Fandango.
Interesting facts
- Double Fine's recent releases include Keeper and Kiln, which were met with positive reception.
- The studio originally joined Microsoft in 2019, making this impending independence significant.