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Psychonauts 2 Studio Double Wonderful Hit With Layoffs Amid Divestiture From Xbox

Admin by Admin
July 28, 2026
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Psychonauts 2 developer Double Wonderful is present process layoffs, Kotaku has discovered.

The quantity and roles of people impacted is just not but clear, neither is the exact reasoning behind the layoffs. Some people have begun posting in regards to the impacts on social media. Kotaku has reached out to Double Wonderful for remark.

Kotaku has additionally reached out to Xbox, as it’s unclear the place Double Wonderful is within the transition course of out of the corporate. It was just lately introduced that Double Wonderful would spin off into its personal, impartial studio as soon as once more amid an enormous shake-up at Xbox. Inside Xbox, 1600 people had been laid off one month in the past, with one other 1600 deliberate all through the approaching 12 months. It’s unclear if these layoffs at Double Wonderful immediately had been instigated by Xbox or Double Wonderful, although given the circumstances, Double Wonderful itself is extra probably.

Double Wonderful launched Psychonauts 2 in 2021, and adopted up with Keeper in 2025 and Kiln in 2026. Xbox head Asha Sharma has mentioned that Double Wonderful will be capable of maintain its owned IP and catalog post-separation.

Tags: DivestituredoublefineHitLayoffsPsychonautsStudioXbox
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