Double High-quality Proclaims Layoffs Following Cut up From Xbox

Psychonauts developer Double High-quality Productions was among the many 5 studios spun off from Xbox as a part of its ongoing restructuring, and whereas it (fortunately) averted closure, the divorce has compelled the group to make cuts. Particularly, the studio has introduced the departures of 23 workers members.

In a publish shared on social media, Double High-quality head/founder Tim Schafer writes,  “As a small, tightly-knit group, these actions should not taken flippantly. Solely the survival of our studio would ever make us contemplate such a painful motion. Our transition to changing into an unbiased firm additionally means changing into a measurement that we will maintain.” Double High-quality states it’s working with affected workers “as finest we will” throughout their transition. 

Double High-quality was granted independence from Xbox alongside South of Midnight developer Compulsion Video games earlier this month; each studios retained their IP and sport catalogs as a part of the break up. Xbox additionally spun off three different studios; Ninja Idea and Undead Labs have been offered to unspecified consumers, and Arkane Studios’ destiny stays up within the air because it undergoes obligatory session in France. 

Double High-quality’s most up-to-date launch is the pottery-themed multiplayer occasion sport Kiln, which launched in April. Below Xbox’s possession, the group shipped Psychonauts 2 in 2021 and Keeper in 2025.