HomeGamingDouble Fine Reclaims Full IP After Xbox Exit

Double Fine Reclaims Full IP After Xbox Exit

Tim Schafer’s studio now owns Psychonauts 2, Keeper, Kiln and the rest of its catalog as it charts an independent future.

Double Fine Productions is fully independent again, and the studio has the rights to prove it. CEO Tim Schafer confirmed this week that the intellectual property and publishing rights for every game made during its seven years under Xbox have returned to the team. That includes Psychonauts 2, Keeper, and Kiln. Players who buy those titles are now putting money directly into the studio’s pocket.

The confirmation came on the Kinda Funny Games podcast, where Schafer answered a fan question about whether sales still supported Double Fine. “The transfer of the IP came back to us, and we get the publishing rights back to all our games,” he said. Some storefronts still list Microsoft as publisher for now, but Schafer noted the paperwork simply takes time to process. “When people buy our games, it supports the studio.”

From Xbox Acquisition to Independence

Microsoft acquired Double Fine in 2019. The studio delivered Psychonauts 2, Keeper, and the pottery puzzler Kiln while under the Xbox Game Studios banner. In July 2026, Xbox CEO Asha Sharma announced a major restructuring that cut roughly 3,200 roles and spun several studios out. Double Fine and Compulsion Games both returned to independent ownership with their IP, catalogs, and a short financial runway for future projects.

Double Fine’s own statement at the time thanked Xbox for seven years and the deal that “preserves our history and culture, and returns ownership of our games to us.” Full separation followed, after which the studio reduced headcount by 23 roles to reach a sustainable size. Schafer called the cuts painful but necessary for survival.

What Ownership Means Now

With publishing rights restored, Double Fine keeps the revenue that previously flowed through Xbox. The studio can set prices, run sales, and decide its own release plans without Microsoft approval. Schafer has already pointed to upcoming permanent price drops on some titles and international pricing reviews on Steam. Buying the back catalog, he stressed, directly extends the studio’s runway.

That runway is finite. Schafer described it as “a runway, not a freeway.” The team is already moving to lengthen it.

Amnesia Fortnight Returns via Kickstarter

Double Fine is reviving its signature Amnesia Fortnight game jam as a public Kickstarter campaign launching August 31. Staff will pitch ideas, backers will vote on four prototypes, and one will be polished into a small commercial release under a new Double Fine Action Labs label. 2 Player Productions will document the process. Previous Amnesia Fortnights spawned Costume Quest, Stacking, and elements of later games including Kiln.

The campaign aims to give the newly independent studio breathing room while it pursues other deals. For a team built on creative risk and community support, the move feels like a return to form.

Double Fine’s next chapter is already underway. Fans who have followed the studio from LucasArts roots through crowdfunding triumphs and the Xbox years now have a clear way to help write it: buy the games, back the jam, and keep the creative engine running.



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