Tim Schafer After Xbox Split: 'Someone Is Simply Greedy'

Tim Schafer's patience has run out. The Double Fine founder has publicly commented on the current crisis in the gaming industry after his studio's separation from Xbox – and primarily blames one thing: greed among big publishers.

What Did Tim Schafer Say About the Industry?

In an interview, Schafer was asked whether the economics of the gaming industry had fundamentally changed in recent years. His answer was unusually direct: People are playing games, companies are still making money – yet new waves of layoffs keep rolling through the industry. He could only explain it by someone, somewhere, being greedy. Schafer doesn't name names, but the jab at big publishers and corporations is hard to miss.

How Did the Split Between Double Fine and Xbox Come About?

Double Fine had been part of Xbox Game Studios since its acquisition in 2019. According to Schafer, his team initially only learned from online rumors that Microsoft was considering a possible closure of the studio. The rumors were confirmed – but instead of closure, Double Fine negotiated its return to independence. In July 2026, the deal was announced, allowing them, along with the “South of Midnight” studio Compulsion Games, to leave Xbox while retaining their own games and brands. The price was high: Shortly after the split, Double Fine had to lay off around 23 employees, about a quarter of its workforce. Schafer explained at the time that this was the only way to achieve a studio size that an independent team could afford.

Why Is Xbox Currently Facing So Much Criticism?

The Double Fine case is just one piece of a much larger picture. In 2026, Xbox embarked on a harsh austerity course, which, according to its own goals, is expected to cost up to 3,200 jobs – a goal it even threatens to miss, as recently reported. Most recently, the Age of Empires studio World’s Edge was hit particularly hard, losing almost half of its workforce after restructuring. Against this backdrop, Schafer's words seem less like a spontaneous personal opinion and more like a summary of what many developers at Xbox and beyond are currently thinking.

From our perspective, Schafer hits a sore spot with this. The industry as a whole continues to generate billions in revenue, while entire teams are simultaneously being dismantled – this contradiction can hardly be argued away. The fact that a seasoned industry veteran like Schafer, who almost lost his own job, openly states this only makes the statement more credible. Trust in publisher promises is unlikely to grow as a result.