# Double Fine cuts staff weeks after separating from Xbox

- URL: https://talkfuse.com/story/only-the-survival-of-our-studio-would-make-us-consider-such-a-painful-action-tim-schafer-announces-double-fine-layoffs-just-3-weeks-after-xbox-cut-it-loose/
- Published: 2026-07-28T22:32:08+00:00
- Updated: 2026-07-29T04:47:13+00:00
- Original publisher: PC Gamer
- Original article: https://www.pcgamer.com/gaming-industry/only-the-survival-of-our-studio-would-make-us-consider-such-a-painful-action-tim-schafer-announces-double-fine-layoffs-just-3-weeks-after-xbox-cut-it-loose/
- Topics: Americas, Entertainment, Gaming

## Key points

- Double Fine lays off roughly two dozen staff amid restructuring
- Cuts come three weeks after Xbox formally separated from the studio
- Tim Schafer says layoffs were a last resort for survival

## Summary

Double Fine has laid off around two dozen staff, just three weeks after Microsoft's Xbox division formally separated the studio from the company. Founder Tim Schafer personally confirmed the cuts, describing them as a last resort and stating that "only the survival of our studio would make us consider such a painful action." The move leaves the Psychonauts and Costume Quest studio operating independently for the first time in years, without Xbox's financial backing.

Double Fine framed the layoffs as necessary to establish a sustainable cost structure now that it must fund itself. The episode highlights the precarious position facing smaller, creatively distinctive studios in the wake of Microsoft's broader restructuring of its games division, with other studios cut loose in the same process similarly reporting an urgent need for new projects or funding to remain viable.

## Coverage

- [PC Gamer: Double Fine cuts staff weeks after separating from Xbox](https://www.pcgamer.com/gaming-industry/only-the-survival-of-our-studio-would-make-us-consider-such-a-painful-action-tim-schafer-announces-double-fine-layoffs-just-3-weeks-after-xbox-cut-it-loose/)
- [GamesRadar+: After escaping Xbox, Double Fine lays off 23 people as Tim Schafer says "only the survival of our studio would ever make us consider such a painful action"](https://www.gamesradar.com/games/after-escaping-xbox-double-fine-lays-off-23-people-as-tim-schafer-says-only-the-survival-of-our-studio-would-ever-make-us-consider-such-a-painful-action/)
- [Rock Paper Shotgun: After gaining independence from Xbox, Double Fine are laying off a quarter of their staff](https://www.rockpapershotgun.com/after-gaining-independence-from-xbox-double-fine-are-laying-off-a-quarter-of-their-staff)

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.