Double Fine Now Retains All Revenue From Games Made Under Xbox Following Independence

Double Fine has fully transitioned into an independent studio, regaining publishing rights and all revenue for games created under Microsoft.

Double Fine has completed its transition into an independent studio after leaving Xbox earlier this year. According to CEO Tim Schafer during an appearance on the Kinda Funny podcast, the studio has fully secured the transfer of its intellectual property and regained the publishing rights for all of its games. Schafer confirmed that the studio now earns all revenue when players purchase these titles, noting that buying any of their games directly supports the independent developer.

While digital storefronts such as Steam still list Xbox Game Studios as the publisher for games like Psychonauts 2 and Keeper, Schafer explained that it simply takes time for the backend publishing changes to process. The newly independent status arrives as the studio works to extend its financial runway by pitching new projects to publishers, supported by game sales and upcoming crowdfunding efforts.

Later this month, Double Fine plans to launch a Kickstarter campaign centered around its annual Amnesia Fortnight game jam. The event, which previously birthed titles like Costume Quest and Stacking, will be filmed for a documentary, and campaign backers will help vote on which concept gets developed into a small game. Additionally, Schafer teased that Kiln, the studio's recently released pottery brawler multiplayer game, will receive a price drop and a major update next week featuring new maps and modes.

The studio's return to independence follows a period of restructuring. Double Fine laid off 23 staff members last month to reach a sustainable size, arriving shortly after Microsoft permitted the studio to go independent amid broader restructuring that saw 3,200 layoffs at Xbox. Compulsion Games, another studio cut loose by Microsoft, similarly confirmed it now holds full publishing rights to its games.

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  1. PC GamerEstablished publication · recorded Aug 21, 2026
    The newly independent Psychonauts dev now earns all the revenue when you buy games it made under Xbox: 'Buying any of our games helps support the studio'
  2. Rock Paper ShotgunEstablished publication · recorded Aug 22, 2026
    "Buying any of our games helps support the studio": Psychonauts studio Double Fine are the latest former Xbox-owned studio to get the rights to their games back