Psychonauts developer Double Wonderful Productions was among the many 5 studios spun off from Xbox as a part of its ongoing restructuring, and whereas it (fortunately) prevented closure, the divorce has pressured the crew to make cuts. Particularly, the studio has introduced the departures of 23 employees members.
In a put up shared on social media, Double Wonderful head/founder Tim Schafer writes, “As a small, tightly-knit crew, these actions aren’t taken calmly. Solely the survival of our studio would ever make us contemplate such a painful motion. Our transition to changing into an impartial firm additionally means changing into a measurement that we will maintain.” Double Wonderful states it’s working with affected employees “as finest we will” throughout their transition.
Double Wonderful was granted independence from Xbox alongside South of Midnight developer Compulsion Video games earlier this month; each studios retained their IP and recreation catalogs as a part of the cut up. Xbox additionally spun off three different studios; Ninja Principle and Undead Labs have been bought to unspecified patrons, and Arkane Studios’ destiny stays up within the air because it undergoes obligatory session in France.
Double Wonderful’s most up-to-date launch is the pottery-themed multiplayer get together recreation Kiln, which launched in April. Beneath Xbox’s possession, the crew shipped Psychonauts 2 in 2021 and Keeper in 2025.
