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Psychonauts 2 Studio Double Fine Hit With Layoffs Amid Divestiture From Xbox
Kotaku • • technology
Key Points:
- Double Fine, the developer behind Psychonauts 2, has conducted layoffs affecting 23 employees as it transitions back to independent management from Xbox ownership.
- The studio stated the layoffs were necessary for its survival and to adjust to a sustainable size as an independent company.
- Xbox confirmed that Double Fine has fully returned to independent management, including control over its intellectual property and future projects.
- The layoffs follow a broader restructuring at Xbox, which recently laid off 1,600 employees and plans an additional 1,600 layoffs due to profitability challenges and overexpansion.
- Both Double Fine and Xbox expressed optimism about the studio’s future creative endeavors as it embarks on this new chapter independently.
