Double Fine Productions and Compulsion Games have confirmed their future as independent studios in the wake of significant layoffs at Xbox. While neither studio will be shut down, they will no longer be part of Xbox Game Studios. The exact impact on the workforce of these studios was not detailed by Xbox CEO Asha Sharma during an address that confirmed 3,200 job cuts across the company this year.
Both Double Fine and Compulsion Games were previously independent before their acquisition by Microsoft, a move aimed at bolstering the Xbox Game Pass library. As they return to independent status, the specific projects they will undertake next remain undisclosed. However, both companies will retain access to their established franchises and have been assured by Xbox that they possess sufficient resources for their upcoming games.
Double Fine, founded in 2000 by veteran developer Tim Schafer, is recognized for titles such as Psychonauts, Brütal Legend, and Costume Quest. The studio's recent releases, Keeper and Kiln, did not achieve widespread commercial success.
"Once again, Double Fine Productions will be an independent studio," the company stated via X. "We're thankful to everyone at Xbox for seven great years together, and for working with us to reach an outcome which preserves our history and culture, and returns ownership of our games to us." The statement concluded with an expression of gratitude for supportive messages and a promise of future updates.
Compulsion Games, established in 2009, is known for Contrast, We Happy Few, and the recently released South of Midnight. The studio emphasized its dedication to crafting unique games with rich narratives and handcrafted experiences.
"Today, we're sharing that Compulsion Games will return to independent management following our time as part of Xbox," Compulsion Games announced in a similar statement. "As part of this transition, we will retain the rights to Contrast, We Happy Few, and our award-winning South of Midnight." The studio expressed gratitude for Xbox's support and affirmed its commitment to creating distinctive games that tell important stories and connect with players.