Compulsion Games and Double Fine have issued statements following the announcement of major layoffs at Xbox and confirmation that both studios will return to independent management.
The news follows Xbox CEO Asha Sharma’s confirmation that approximately 3,200 jobs will be cut during FY27 as part of what she described as the biggest restructuring in the company’s history. Around 1,600 roles are being eliminated immediately, while four studios are leaving Xbox under new management.
In a statement, Compulsion Games reflected on its origins as an independent developer before confirming it will once again operate independently.
“Today, we’re sharing that Compulsion Games will return to independent management following our time as part of XBOX. As part of this transition, we will retain the rights to Contrast, We Happy Few, and our award-winning South of Midnight.”
The studio thanked Xbox for its support over the past several years and said its immediate focus is helping employees through the transition.
“Our immediate priority is to support our team throughout this transition period. We are confident in the future of Compulsion Games and look forward to this next chapter where one thing will remain constant: we will create unique games that tell important stories, all with the goal of touching the hearts and minds of our players.”
Double Fine also confirmed its return to independence, expressing gratitude to Xbox for its time under the company’s ownership.
“Once again, Double Fine Productions will be an independent studio.”
The studio added, “We’re thankful to everyone at Xbox for seven great years together, and for working with us to reach an outcome which preserves our history and culture, and returns ownership of our games to us.”
Double Fine also thanked fans for their support following the news, saying, “To everyone who has reached out to us these past few weeks: Thank you so much for all your kind words, we’ve been deeply touched by all your messages. We will share more news soon on what comes next.”
