Psychonauts
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Double Fine has reduced its workforce by roughly one quarter as the studio adjusts to life as an independent developer once again. The company, widely recognized for Psychonauts and its long-running reputation for inventive, character-driven games, confirmed the layoffs on July 28, 2026. The move comes only weeks after major restructuring across Xbox led to…
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Microsoft is reportedly considering major changes across its Xbox studio network, with Double Fine, Ninja Theory, and Compulsion Games said to be among the teams facing possible closure or spin-off discussions. The reported moves come as the company pushes for another internal reset of its gaming division after years marked by layoffs, project cancellations, and…