Tim Schafer Questions Game Industry Economics Amidst Layoffs

The Double Fine founder reflects on his studio's independence, Game Pass, and the reasons behind widespread job losses in the sector.

Sep 24, 2026
Game News
Tim Schafer Questions Game Industry Economics Amidst Layoffs

Tim Schafer, founder of Double Fine Productions and a veteran game designer, has shared his perspective on the current state of the video game industry, including the economic factors contributing to widespread layoffs. Speaking to the BBC, Schafer addressed Double Fine's recent transition back to independence following its split with Xbox.

"Our mission in the beginning - seven years ago - was to really support Game Pass and fill it with as much goodness as we could," Schafer explained regarding the studio's tenure under Microsoft. "We put our back catalogue and new stuff, about 13 games on Game Pass." He noted that Xbox's strategy has since shifted towards fewer, larger intellectual properties, a direction that diverged from Double Fine's approach of creating multiple smaller-scope games. This misalignment led to the amicable separation, with Schafer stating, "We wanted to keep doing that, so we went our separate ways."

Despite the studio's shift, Schafer expressed continued support for the Game Pass subscription model. "I love it as an idea. I liked it for Double Fine games," he said. He believes the service lowers the barrier to entry for consumers, encouraging them to try a wider variety of games, including those with unconventional concepts that Double Fine is known for. "So I'm very pro Game Pass, and hope it succeeds and goes forward," Schafer added.

He also spoke about the broader industry challenges, expressing confusion over the persistent job losses. "I don't understand the economics of making games," Schafer admitted. "For years I understood them because there are layoffs - which are bad - and then the executives realise, 'Oh we fired everybody, we need someone to make this game!'. Then they hire people back." He observed that this cycle has been predominantly negative for four years, despite continued player engagement and industry revenue. "I assume someone is being greedy somewhere," he speculated.

Despite these concerns, Schafer remains optimistic about the industry's creative potential, particularly within the independent sector. "I hope it is a cycle and it bounces back," he said. "There's a lot of life, excitement, and creativity in the games industry now, especially in the indie space." He acknowledged that while triple-A development also features significant creative work, it has become a more volatile environment. Double Fine is currently engaged in Amnesia: Fortnite, a game jam where its team develops smaller projects, with recent public voting via Kickstarter determining which titles move forward.

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