Upcoming game by Double Fine scheduled for 2025
Double Fine CEO Tim Schafer confirmed the studio now owns the IP and publishing rights for its entire catalog following its separation from Xbox, meaning game purchases directly fund the independent studio. The Psychonauts developer also revealed details on its 2026 pottery multiplayer game Kiln and an Amnesia Fortnight Kickstarter launching August 31.
Just days after buying back its independence from Xbox, Compulsion Games, developer of South of Midnight and We Happy Few, is seeking new collaboration opportunities. The studio is open to supporting other projects, indicating a potential shift in its immediate focus. As the gaming industry navigates cost-cutting measures, Compulsion Games' next move is closely watched.
Ninja Theory (Hellblade) and Double Fine (Psychonauts) are reportedly negotiating with Microsoft to avoid closure amid significant Xbox business cuts. Their potential independence would still likely result in substantial layoffs. The move follows Xbox boss Asha Sharma's "reset" warning and a revealed 3% accountability margin for Microsoft's gaming business.
Double Fine, the Xbox-owned studio behind Psychonauts 2, has filed to unionize with the CWA, seeking protections amid significant strategy shifts under new Xbox CEO Asha Sharma. The move includes all 42 employees and comes as Xbox undergoes sweeping changes, including alterations to Game Pass and leadership overhauls. This unionization reflects a growing trend among Xbox-owned studios.
