Double Fine's Response to Closure Reports: A Single Emoji
Psychonauts developer Double Fine has responded to the reports of its potential closure with a single emoji.
Psychonauts developer Double Fine has responded to the reports of its potential closure with a single emoji.
The San Francisco studio, owned by Microsoft, is facing uncertainty amidst a shakeup at Xbox that may lead to layoffs. Alongside Ninja Theory and Compulsion, Double Fine is reportedly in talks with Microsoft to avoid closure. Known for the Psychonauts series, Double Fine was acquired by Microsoft in 2019 and released Keeper in 2025 and Kiln earlier this year, both without commercial success.
Xbox Game Studios boss Craig Duncan's resignation sparked rumors of Microsoft studio closures. Double Fine's response to the situation was a social media post featuring a single emoji. Compulsion, Ninja Theory, and Double Fine are not the only studios negotiating with Xbox. Microsoft's gaming business is undergoing a potential reset, with plans for layoffs and studio closures. The company is also accelerating development on new games like The Elder Scrolls, Fallout, and Halo.
Microsoft CEO Satya Nadella emphasized the need for Xbox to innovate and monetize its games effectively. The company aims to transform its gaming business into a sustainable and profitable venture. The upcoming Xbox layoffs are expected to take place by June 30, marking a significant shift in the brand's strategy.
