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Reading: Psychonauts Studio Takes Full Control of Games and Publishing
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Gamers Illustrated > Blog > Gaming News > Psychonauts Studio Takes Full Control of Games and Publishing
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Psychonauts Studio Takes Full Control of Games and Publishing

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Last updated: August 23, 2026 4:30 am
By Gamers Illustrated 2 Min Read
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Double Fine Regains Independence and Ownership of Its IP

Double Fine, the developer behind titles such as Psychonauts, Costume Quest, and Brutal Legend, is now independent from Microsoft. According to CEO Tim Schafer, this means the studio officially owns all its intellectual property and publishing rights to its games again.

Schafer confirmed this during a recent episode of Kinda Funny Games Daily (see Kinda Funny Games Daily), where he answered a question about the studio’s revenue from games like Psychonauts 2 that were created under Microsoft’s ownership. “Everything, we got back, the transfer of the IP came back to us,” he said. “All, we have the publishing rights back to our games. It still says ‘Microsoft’ on some of them, but it just takes a while for it all to process. When people buy our games, it supports the studio. So if you’re curious, buying any of our games helps support the studio, and we can turn that money into revenue that helps us extend that runway.”

He also mentioned that the team is working on updates for its latest release, Kiln, with a major update planned for next week that will add new maps and game modes, along with a price reduction. “You should pick it up; it’s genuinely delightful.”

Earlier in the podcast, Schafer announced the return of Double Fine’s beloved internal game jam, Amnesia Fortnight, as a live event with a Kickstarter component that lets supporters vote on the games the studio will develop. The goal is to fund one small Kickstarter project, providing the studio with financial runway after its separation so it can work on other projects with stability.

Double Fine was acquired by Microsoft in 2019, during which it released Psychonauts 2, Keeper, and Kiln. The recent restructuring led to layoffs, mirroring similar moves at other studios such as Compulsion Games, which recently revealed that its Xbox title South of Midnight is now self‑published and owned by the studio.

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