Double Fine Productions regained freedom from Xbox, but not without a sacrifice that reminds us that this industry has become a cruel and tiring place

A cartoon character with large red goggles and a brown aviator cap stands in a green environment, holding a glowing white light between their hands.

It's been three weeks since Xbox's massive "reset" that saw over 3,200 employees lose their jobs, and the damage reports of its aftermath continue to pour in. The latest casualty report of this "reset" comes from Double Fine Productions, one of the studios that actually managed to escape the worst of it by going independent.

However, Double Fine Productions didn't survive unscathed. On July 28, 2026, its studio head, Tim Schafer, announced on Bluesky that to survive Xbox's "reset," Double Fine Productions had no choice but to lay off 23 employees.