Double Fine Lays Off About A Third Of Its Employees

Double Fine is cutting 23 jobs, about one-third of its 90-person team, as it prepares to leave Xbox Game Studios and become independent again.

The studio said the layoffs are needed to help secure its future, even as it exits Microsoft’s broader Xbox ecosystem.

The move highlights how Microsoft’s and Xbox’s downsizing is reaching well beyond platform teams to hit well-known game studios.

It also shows the financial strain indie and mid-sized developers face, even after major releases like Psychonauts 2.