Double Fine creates characterful games (Psychonauts, Brutal Legend) and is in the news as Microsoft cuts 4,800 jobs, signaling shifts in its tech ecosystem.
Microsoft has announced 4,800 job cuts companywide, including 3,200 roles in Xbox during fiscal 2027 and 1,600 Xbox positions eliminated immediately. Xbox will spin out or divest five studios and reduce management layers as it restructures to strengthen margins while shifting resources toward AI and core franchises. The move has reduced Xbox headcount by about 20%.