Psychonauts and Brutal Legend developer Double Fine Productions has confirmed it has regained the IP and publishing rights for all of its games released under Microsoft following its split from Xbox.
CEO Tim Schafer cleared the air about the developer’s future in the industry during a conversation with Kinda Funny Games today. Amid questions from fans hoping to support Double Fine as it enters a new chapter, he clarified that buying any of its previous releases will help it continue to flex the wildly creative muscles it’s known for.
“I saw a question, there, ‘Do you guys make the money on games?’ The transfer of the IP came back to us, and we get the publishing rights back to all our games,” Schafer said.
The one caveat to all of this is that it may still say Microsoft owns “some of them,” but that will change in time. He went on, explaining, “it just takes a while for it to all process.” The headline, though, is that “when people buy our games, it supports the studio.”
“If you’re curious, buying any of our games helps support the studio,” he repeated. “We can turn that money into revenue that helps us extend that runway.”
That “runway” is something Schafer brought up a few times during his conversation on the daily gaming show. Xbox CEO Asha Sharma promised that Double Fine, as well as South of Midnight developer Compulsion Games, would retain their IP, catalog, and a “runway for their next games” when they were listed as part of a grand restructuring plan early last month. The move, which also laid the groundwork for 3,200 layoffs across Xbox teams, gave the Psychonauts studio an out amid troubles at Microsoft’s gaming division but left its long-term future uncertain.
To help extend that runway today, Schafer and the rest of Double Fine pulled back the curtain on its Amnesia Fortnight 2026, Indie Reboot Kickstarter page. The crowdfunding campaign will result in a game jam that’s set to take place starting August 31 and will run “through most of September.”
In typical Double Fine fashion, it’s got its own twist, too, with the page promising to let backers choose which ideas make it to the prototyping stage, with one eventually becoming a “real (small) game.” Additionally, 2 Player Productions will be filming every step of the way, with the goal being to create a documentary.
Schafer said during today’s interview that there “are other projects we’re working on,” though what those are remains to be seen. With access to stories from games like Keeper, Psychonauts 2, and Kiln back in its control, that runway is already looking a little bit longer.
Speaking of Kiln, its 2026 pottery-based multiplayer game, Schafer said the studio is still firing updates behind the scenes. “New maps and modes” seem to be just the tip of the iceberg, with Schafer also promising to drop the price “because we’re crazy.”
Double Fine’s transition back into an independent studio was almost immediately followed by layoffs affecting 25% of its team. For now, what shape its next game will take is unclear. In the meantime, you can read about why IGN thinks their work is worth checking out with our 9/10 Keeper review and our 8/10 Psychonauts 2 review.
Michael Cripe is a freelance writer with IGN. He’s best known for his work at sites like The Pitch, The Escapist, and OnlySP. Be sure to give him a follow on Bluesky (@mikecripe.bsky.social) and Twitter (@MikeCripe).
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