Double Fine, the Xbox studio behind Psychonauts, has filed a petition with the National Labor Relations Board to form a union with the Communications Workers of America, representing all 42 regular employees. The studio submitted the petition on May 7, following in the footsteps of other Microsoft-owned developer groups seeking collective bargaining power.

Workers aim to "preserve and extend commitments to creative excellence, diversity and inclusion, and worker quality of life" and have requested voluntary recognition from Microsoft. The company has agreed to remain neutral and not interfere with employees' rights to organize, mirroring its approach with other unionizing studios.

Microsoft acquired Double Fine in 2019, almost two decades after the release of Psychonauts. Under Xbox Game Studios, the studio has developed titles including Psychonauts 2, Keeper, and Kiln. The unionization at Double Fine continues a growing trend within Microsoft's gaming division, following similar efforts at Blizzard, ZeniMax Studios, and other developer subsidiaries.