Double Fine Productions, which recently launched Kiln and previously developed the Psychonauts series, regained its independence during the massive Xbox reset that saw numerous studio closures and layoffs. The studio announced that 23 staff members have been affected, representing roughly a quarter of its workforce.

The contraction was driven solely by company financials, as the studio’s leadership stated that the move is necessary to sustain operations. In a statement to Kotaku, Xbox noted that Double Fine “fully returned to independent management earlier this week, with their IP, catalog, and runway for their next games.”

It remains unclear whether Double Fine has projects in active development, but the layoffs could delay future releases. The studio has emphasized its commitment to supporting every affected employee and thanked them for their hard work and dedication to Double Fine’s creative spirit.

These actions underscore the challenges small, independent studios face in a volatile industry, while also highlighting the importance of financial stability and employee support during transitions.