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After Xbox Cuts, Double Fine and Compulsion Games Confirm Studio Status and Ability to Keep Franchises Such as Psychonauts and South of Midnight

by 7 July 2026030
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Double Fine and Compulsion Games have issued public statements to verify their standing following phrase of at the moment’s huge cuts by Xbox, discussing their respective futures as impartial studios.

Whereas neither firm can be shut down, neither can be half of Xbox Sport Studios going ahead both — and in an tackle to Xbox employees that confirmed job cuts of 3,200 staff this yr, Xbox CEO Asha Sharma made no point out of how both firm’s workforce would even be impacted by their transfer to independence.

Each Double Fine and Compulsion have been impartial studios earlier than, prior to their buy by Microsoft throughout its company-buying spree — a bid to discover corporations who would assist fill the Xbox Sport Go catalogue. Every developer will now return to impartial standing, with no phrase on what both studio will now work on. Each firms can be in a position to preserve entry to their current franchises, nevertheless, and Sharma stated they each have “runway for his or her subsequent video games.”

Based in 2000 by legendary LucasArts developer Tim Schafer, Double Fine is understood for a string of indie hits such as Psychonauts, Brütal Legend, Costume Quest, and the hugely-successful Kickstarter mission Damaged Age. Over the previous 12 months, the studio launched its first new video games for a number of years — colourful journey Keeper and multiplayer pottery brawler Kiln — although neither discovered widespread success.

“As soon as once more, Double Fine Productions can be an impartial studio,” the corporate stated in a statement posted to X/Twitter, collectively signed off by Schafer. “We’re grateful to everybody at Xbox for seven nice years collectively, and for working with us to attain an consequence which preserves our historical past and tradition, and returns possession of our video games to us.

“To everybody who has reached out to us these previous few weeks: Thanks a lot for all of your variety phrases, we have been deeply touched by all of your messages. We’ll share extra information quickly on what comes subsequent. Your continued assist is enormously appreciated.”

The youthful Compulsion Games, in the meantime, is understood for a smaller roster of titles together with Distinction, We Completely satisfied Few, and most lately its suave journey South of Midnight.

“When Compulsion Games was based in 2009 as an interdependent studio, we had been only a few dreamers in a leaky gramophone manufacturing facility devoted to creating wealthy storylines and experiences that felt handcrafted,” the corporate started in an identical statement posted to X/Twitter. “We care concerning the craft of making video games, the tales we inform, the gamers who expertise them, and the assembled creators who put their coronary heart and soul into doing one thing totally different.

“Right now, we’re sharing that Compulsion Games will return to impartial administration following our time as half of Xbox. As half of this transition, we are going to retain the rights to Distinction, We Completely satisfied Few, and our award-winning South of Midnight. We’re grateful for the years we spent with Xbox, for the assist they offered our crew, and for the chance to carry these video games to gamers around the globe. As an impartial studio, we’re excited to proceed constructing the distinctive video games that outline Compulsion whereas taking the subsequent steps in our journey.

“Our fast precedence is to assist our crew all through this transition interval. We’re assured sooner or later of Compulsion Games and look ahead to this subsequent chapter the place one factor will stay fixed: we are going to create distinctive video games that inform necessary tales, all with the aim of touching the hearts and minds of our gamers.”

Tom Phillips is IGN’s Information Editor. You’ll be able to attain Tom at tom_phillips@ign.com or discover him on Bluesky @tomphillipseg.bsky.social

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