Double Fine and Compulsion Confirm Independent Status After Xbox Layoffs, Retain Rights to Psychonauts and South of Midnight

Double Fine and Compulsion Games have released statements confirming their status following today's massive layoffs at Xbox, detailing their futures as independent studios. Neither studio is shutting down, but both will no longer be part of Xbox Game Studios. In a memo to Xbox staff confirming 3,200 job cuts this year, Xbox CEO Asha Sharma did not address how the workforce of either company would be affected by the move to independence. Both studios have been independent before, having been acquired by Microsoft during its buying spree to fill the Xbox Game Pass catalog. They will now return to independent status, with no word on their next projects. However, both retain access to their existing franchises, and Sharma stated they have "runway for their next games." Double Fine, founded in 2000 by LucasArts legend Tim Schafer, is known for hits like Psychonauts, Brütal Legend, Costume Quest, and the successful Kickstarter project Broken Age. Over the past year, the studio released Keeper and Kiln, but neither found major success. "Once again, Double Fine Productions will be an independent studio," the company said in a statement signed by Schafer. "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." Compulsion Games, known for Contrast, We Happy Few, and South of Midnight, also released a statement: "Compulsion Games will return to independent management following our time as part of Xbox. As part of this transition, we will retain the rights to Contrast, We Happy Few, and our award-winning South of Midnight." Both studios expressed gratitude for their time with Xbox and excitement for the future.