‘I Really Want Game Pass to Work’ — After Navigating the Xbox ‘Reset,’ Double Fine Boss Tim Schafer Is Indie Once Again

Double Fine Productions has returned to independence after separating from Xbox Game Studios following Microsoft’s major corporate restructuring. The studio, known for titles including Psychonauts 2, Kiln, and Keeper, is entering what studio head Tim Schafer describes as their second (or third) life as an independent developer.

The transition appears to be moving smoothly, with Double Fine already launching a successful Kickstarter campaign for Amnesia Fortnight 2026, a developer-run game jam that produces a collection of micro games. The campaign aims to provide the studio with runway to support their operations while they develop their next major project.

In recent interviews at PAX West 2026, Schafer reflected on the studio’s time at Xbox, characterizing it as a “great experience” while also offering candid observations about why Game Pass may not have achieved the cultural impact of similar services. “I don’t understand why Netflix worked and Game Pass didn’t,” Schafer remarked, questioning the subscription service’s ability to drive engagement and user adoption comparable to other entertainment platforms.

Despite the parting of ways, Double Fine remains active in supporting its existing titles. Kiln, the former Xbox exclusive, recently received both a permanent price drop and a substantial update, suggesting the studio maintains commitment to its portfolio during this transition period.

Sources