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Double Wonderful Owns IP and Publishing Rights Its Video games After Xbox Cut up Psychonauts Studio Confirms

August 22, 2026
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Psychonauts and Brutal Legend developer Double Wonderful Productions has confirmed it has regained the IP and publishing rights for all of its video games launched beneath Microsoft following its cut up from Xbox.

CEO Tim Schafer cleared the air concerning the developer’s future within the business throughout a dialog with Kinda Humorous Video games right this moment. Amid questions from followers hoping to assist Double Wonderful because it enters a brand new chapter, he clarified that purchasing any of its earlier releases will assist it proceed to flex the wildly artistic muscle tissues it is identified for.

“I noticed a query, there, ‘Do you guys make the cash on video games?’ The switch of the IP got here again to us, and we get the publishing rights again to all our video games,” Schafer mentioned.

The one caveat to all of that is that it might nonetheless say Microsoft owns “a few of them,” however that may change in time. He went on, explaining, “it simply takes some time for it to all course of.” The headline, although, is that “when individuals purchase our video games, it helps the studio.”

“If you happen to’re curious, shopping for any of our video games helps assist the studio,” he repeated. “We will flip that cash into income that helps us prolong that runway.”

That “runway” is one thing Schafer introduced up just a few instances throughout his dialog on the every day gaming present. Xbox CEO Asha Sharma promised that Double Wonderful, in addition to South of Midnight developer Compulsion Video games, would retain their IP, catalog, and a “runway for his or her subsequent video games” after they have been listed as a part of a grand restructuring plan early final month. The transfer, which additionally laid the groundwork for 3,200 layoffs throughout Xbox groups, gave the Psychonauts studio an out amid troubles at Microsoft’s gaming division however left its long-term future unsure.

To assist prolong that runway right this moment, Schafer and the remainder of Double Wonderful pulled again the curtain on its Amnesia Fortnight 2026, Indie Reboot Kickstarter web page. The crowdfunding marketing campaign will end in a sport jam that is set to happen beginning August 31 and can run “by means of most of September.”

In typical Double Wonderful trend, it is bought its personal twist, too, with the web page promising to let backers select which concepts make it to the prototyping stage, with one finally changing into a “actual (small) sport.” Moreover, 2 Participant Productions can be filming each step of the way in which, with the aim being to create a documentary.

Schafer mentioned throughout right this moment’s interview that there “are different tasks we’re engaged on,” although what these are stays to be seen. With entry to tales from video games like Keeper, Psychonauts 2, and Kiln again in its management, that runway is already trying slightly bit longer.

Talking of Kiln, its 2026 pottery-based multiplayer sport, Schafer mentioned the studio remains to be firing updates behind the scenes. “New maps and modes” appear to be simply the tip of the iceberg, with Schafer additionally promising to drop the worth “as a result of we’re loopy.”

Double Wonderful’s transition again into an unbiased studio was virtually instantly adopted by layoffs affecting 25% of its staff. For now, what form its subsequent sport will take is unclear. Within the meantime, you possibly can examine why IGN thinks their work is value testing with our 9/10 Keeper evaluate and our 8/10 Psychonauts 2 evaluate.

Michael Cripe is a contract author with IGN. He is finest identified for his work at websites like The Pitch, The Escapist, and OnlySP. Be sure you give him a observe on Bluesky (@mikecripe.bsky.social) and Twitter (@MikeCripe).



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Tags: ConfirmsdoublefineGamesOwnsPsychonautsPublishingRightsSplitStudioXbox
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