Double Fine and Compulsion Games have issued public statements to confirm their status following word of today’s enormous cuts by Xbox, discussing their respective futures as independent studios.
While neither company will be shut down, neither will be part of Xbox Game Studios going forward either — and in an address to Xbox staff that confirmed job cuts of 3,200 employees this year, Xbox CEO Asha Sharma made no mention of how either company’s workforce would also be impacted by their move to independence.
Both Double Fine and Compulsion have been independent studios before, prior to their purchase by Microsoft during its company-buying spree — a bid to find firms who would help fill the Xbox Game Pass catalogue. Each developer will now return to independent status, with no word on what either studio will now work on. Both companies will be able to keep access to their existing franchises, however, and Sharma said they both have “runway for their next games.”
Founded in 2000 by legendary LucasArts developer Tim Schafer, Double Fine is known for a string of indie hits such as Psychonauts, Brütal Legend, Costume Quest, and the hugely-successful Kickstarter project Broken Age. Over the past 12 months, the studio released its first new games for several years — colorful adventure Keeper and multiplayer pottery brawler Kiln — though neither found widespread success.
“Once again, Double Fine Productions will be an independent studio,” the company said in a statement posted to X/Twitter, jointly signed off 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.
“To everyone who has reached out to us these past few weeks: Thank you so much for all your kind words, we’ve been deeply touched by all your messages. We will share more news soon on what comes next. Your continued support is greatly appreciated.”
The younger Compulsion Games, meanwhile, is known for a smaller roster of titles including Contrast, We Happy Few, and most recently its artful adventure South of Midnight.
“When Compulsion Games was founded in 2009 as an interdependent studio, we were just a few dreamers in a leaky gramophone factory devoted to creating rich storylines and experiences that felt handcrafted,” the company began in a similar statement posted to X/Twitter. “We care about the craft of making games, the stories we tell, the players who experience them, and the assembled creators who put their heart and soul into doing something different.
“Today, we’re sharing that 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. We’re grateful for the years we spent with Xbox, for the support they provided our team, and for the opportunity to bring these games to players around the world. As an independent studio, we’re excited to continue building the distinctive games that define Compulsion while taking the next steps in our journey.
“Our immediate priority is to support our team throughout this transition period. We are confident in the future of Compulsion Games and look forward to this next chapter where one thing will remain constant: we will create unique games that tell important stories, all with the goal of touching the hearts and minds of our players.”
Tom Phillips is IGN’s News Editor. You can reach Tom at tom_phillips@ign.com or find him on Bluesky @tomphillipseg.bsky.social
