Tim Schafer Describes Double Fine’s Departure from Xbox as a ‘Creative Awakening’: ‘Asha Won’t Harm My Dog’

Earlier this summer, Double Fine faced the threat of closure, but now the studio is back on its feet, launching a $400,000 Kickstarter for its next game jam. Founder Tim Schafer shows no signs of fatigue from the struggle. In a recent interview, he discussed leaving Xbox and shared insights about the future of the studio known for Psychonauts 2. “Some people said: ‘I’m checking out, this is one too many battles for me.’ But for the rest of us, it’s like a creative awakening,” Schafer remarked.

Despite releasing the critically acclaimed but underperforming Keeper in 2025 and the less successful pottery party game Kil earlier this year, Double Fine didn’t emerge from Xbox’s recent restructuring unscathed. The studio had to let go of 23 employees, and Schafer noted that initial funding from Microsoft won’t last long. However, with independence restored, the studio can now forge its own path, bringing both significant risk and a renewed sense of creative urgency.

“The games industry is full of terrible things, and I can’t change most of them,” Schafer stated. “It’s like I’m a captain of a little fishing boat. And it’s like worrying about whether the ocean is fair. Not much I can do about it. Just keep this little boat afloat, keep trying to see if that’s a reef, or is that a bunch of fish? Is that money over there?”

Schafer mentioned that being part of Xbox was beneficial for a time, but with the arrival of new Xbox CEO Asha Sharma, it became clear that changes were on the horizon. “We had a mutually beneficial mission, which is just to put great games on Game Pass, and then their mission changed,” he explained. “I can’t imagine any amount of profitability—unless we had a breakout Minecraft hit that year—would’ve saved us.”

Although the signs were there, Xbox’s decision to part ways with Double Fine was sudden. Reports indicate that as recently as early summer, there was still uncertainty about Sharma’s plans. Schafer struggled to get clear answers from anyone at Xbox, with some even going silent on him. Rather than harboring resentment, the seasoned developer saw it as a chance to rally the team. He’s currently at PAX West this weekend, supporting Double Fine’s booth.

“No one puts Double Fine out of business except for me,” Schafer told an outlet. “Asha’s not going to shoot my dog. I’m going to shoot it. But I’m not going to shoot it because it’s going to do great. A lot of people want to walk the dog.”