Double Fine lays off about a third of its employees

The indie game company is downsizing as it parts ways with Xbox. Double Fine The ripple effect of the Xbox's layoffs has claimed more members of the game industry. Despite the a recent effort to unionize and a plan to spin out from under the Microsoft umbrella, indie game studio Double Fine has laid off some workers. Following an initial report by Kotaku, the company announced on Bluesky that 23 of its roughly 90 employees are being let go. According to the missive from Double Fine's Tim Schafer, "Only the survival of our studio would ever make us consider such a painful action." — Double Fine (@doublefine.com) 2026-07-28T19:01:18.106Z The team has made a wide range of well-regarded and charming games over the years, such as Psychonauts, Psychonauts 2, Grim Fandango and Costume Quest. Doub