Double Fine, the studio behind Psychonauts, has announced a 25.6% reduction in its workforce. This decision comes just three weeks after the studio transitioned back to independent status following massive restructuring efforts at Xbox.
Double Fine leadership stated the cuts were necessary to ensure the studio’s long-term survival as a smaller, sustainable operation. Xbox officials expressed support for the studio’s new independent chapter, noting that Double Fine retains full control over its IP and future project pipeline.