Double Fine has ducked out of the way of Microsoft's falling axe, going independent after the new Xbox CEO Asha Sharma announced layoffs totalling 3,200 people earlier this year. The studio itself has had a bit of a troubled discography after the win of Psychonauts 2, with neither 2025's Keeper or 2026's Kiln doing much to move the needle.
Tim Schafer pretty much pins his studio's voluntary exile from Microsoft on Sharma in a conversation with Bloomberg, saying that the storm clouds first started gathering when she visited the studio in "listening mode"—but it was clear that, when she started talking about shifting Xbox's vision, it was bad news.
"We had a mutually beneficial mission," says Schafer, "Which is just to put great games on Game Pass, and then their mission changed. I can't imagine any amount of profitability—unless we had a breakout, Minecraft hit that year—would've saved us."
You're reading this article because Double Fine didn't do that, though Schafer doesn't seem to have any major hard feelings about it: "The games industry is full of terrible things, and I can't change most of them. It's like I'm a captain of a little fishing boat. And it's like worrying about whether the ocean is fair. Not much I can do about it. Just keep this little boat afloat, keep trying to see if that's a reef, or is that a bunch of fish? Is that money over there?"
As a matter of fact, Schafer seems galvanised by the whole process: "You're like, 'Wait a second, we're not going out like this.' Some people said: 'I'm checking out, this is one too many battles for me.' But for the rest of us, it's like a creative awakening."
That's not to say Double Fine came out unscathed. Just a few months after its departure, Schafer laid off 23 people to ensure "the survival of our studio". Mind, the attempt to keep those people employed for the three months beforehand—leaving the decision to let them go to fall squarely on Schafer's head—at least seems preferable to the brutal sweeping cuts from Microsoft.
That feeling of personal responsibility is expressed to Bloomberg in some lively terms: "No one puts Double Fine out of business except for me. Asha's not going to shoot my dog. I'm going to shoot it. But I'm not going to shoot it because it's going to do great. A lot of people want to walk the dog."
I'm not so sure about that last bit. While we rather quite liked Keeper, giving it a sterling 90 in our Keeper review, Kiln had an all-time peak of 193 players on SteamDB. There is, at the time of writing—and I swear I am not kidding—exactly one person playing it on Steam. Now, that's not indicative of the wider numbers, Kiln was a game pass joint, but still—Schafer stays optimistic.
"We never actively tried to make a game we thought was going to lose money. I think people would say, 'Oh, Keeper looks like this art house thing that no one expects to be a hit.' But to me it's the kind of game that someone who doesn't play games would love. I really think there's a mass market appeal to Keeper. If we could just get to those people, we could have them catch Lighthouse Fever."
