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TechnologyPublished: 6 July 2026 at 19:37

Former Xbox studios Double Fine and Compulsion will keep games after going indie

Microsoft is spinning off four Xbox game studios; Double Fine and Compulsion will become independent and retain their intellectual property and game catalogs.

Foto: The Verge

Microsoft has announced the spin-off of four of its Xbox game studios as part of a restructuring. Two of them, Double Fine Productions and Compulsion Games, will regain independence and keep their franchises and game catalogs, according to Xbox CEO Asha Sharma.

According to Sharma, Compulsion Games and Double Fine Productions will transition to independent studios, retaining their IP, catalog, and runway for their next games. Both studios have also issued statements about their futures.

Compulsion Games, founded in 2009 as an independent studio, stated it will continue independently and retain rights to games such as “Contrast,” “We Happy Few,” and “South of Midnight.” The studio expressed gratitude for Xbox's support and looks forward to continuing to create unique games.

Double Fine, known for titles like “Psychonauts,” “Keeper,” and “Kiln,” confirmed it will become an independent studio again. It thanked Xbox for seven great years together and for working to preserve its history and culture while returning ownership of its games.

The other two studios, Ninja Theory and Undead Labs, have entered terms to join new ownership with funding to complete and grow their next announced games, “Senua” and “State of Decay 3.” Meanwhile, Arkane Studios, which is working on a “Blade” game, is beginning consultation with its Works Council to review potential strategic options.

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