Double Fine Reclaims Full Ownership of Psychonauts, Kiln, and Keeper

Key points

• Tim Schafer confirmed on Kinda Funny Games Daily that Double Fine has received back all IP and publishing rights for games made during its time under Microsoft ownership.
• Schafer noted that while some titles still display Microsoft branding due to processing delays, revenue from sales now goes directly to the studio to extend its operational runway.
• The studio is currently developing a significant update for Kiln, which will include new maps and game modes, accompanied by a price drop.
• Double Fine is reviving its internal game jam, Amnesia Fortnight, as a live event tied to a Kickstarter campaign to allow fans to vote on future projects and provide immediate financial support.
• This move follows the studio's recent separation from Xbox, which involved layoffs and a broader restructuring of Microsoft's gaming division.

Background

Double Fine was acquired by Microsoft in 2019 and developed several titles under that ownership before being spun off in a major Xbox restructuring in mid-2026. The studio underwent layoffs in July 2026 as part of this transition. Other studios, such as Compulsion Games, have similarly regained control of their IP and publishing rights following similar divestitures from Microsoft.

Why it matters

This development marks a critical step in Double Fine's transition to independence, ensuring that future revenue from its established catalog directly supports the studio's ongoing operations and future projects. It also highlights a broader trend among Xbox studios reclaiming control of their intellectual property following Microsoft's recent restructuring efforts.

What to watch

Double Fine is expected to release a major update for Kiln next week, featuring new content and a price reduction. The studio will also launch the Kickstarter-backed Amnesia Fortnight game jam on August 31, aiming to secure funding and community engagement for future projects.