The Struggle to Unionize a Beloved Game Studio: A Closer Look at the Challenges Faced

“A lot of folks are saying it’s time for the gaming industry to unionize,” Tim Schafer remarked. “They argue that game developers are overworked, underpaid, and exploited. What’s your take on that?”

The crowd of hundreds of game developers at the 2019 Game Developers Choice Awards in San Francisco responded with a mix of awkward chuckles and groans. Schafer continued, “I’m not against unions, but I don’t think we really need them, right? We’re all doing fine here, and no one in this room is unionized—oh, wait.”

Suddenly, the spotlight on Schafer dimmed, plunging him into darkness, which elicited hearty laughter from the audience. “Except for the lighting crew, I forgot they’re unionized. Okay, you guys—”

As he spoke, his microphone malfunctioned, making him sound like a squeaky cartoon character. The audience erupted in laughter again as he seemed to apologize to the audio team. Meanwhile, the video screen behind him switched from the GDCA logo to a black screen with the words “UNION! UNION! UNION!” scrolling repeatedly, prompting cheers from the crowd.

Schafer’s mic returned to normal: “I hear you, I hear you, this is a union show, and we’re better for it. Fine, all right? Thank you. Thank you, Local 16. I guess there are unions all around us, and we somehow live to tell the tale.”

Fast forward over seven years, and Schafer’s own studio, Double Fine Productions, still hasn’t unionized. Earlier this year, a majority of eligible employees filed a petition with the National Labor Relations Board to form a union, but it was withdrawn just two weeks later. This left those employees without union representation just a month before Microsoft, Double Fine’s then-parent company, implemented a sweeping reorganization plan.

Microsoft severed Double Fine from the security of first-party studio status, leaving it to navigate financial uncertainty with limited resources. Shortly after, 23 employees were laid off, including all eight union organizers who had signed the petition withdrawal letter.

“I don’t want to sound like I’m trying to sway anyone,” Schafer told me in September. “I generally support unions and believe the gaming industry treats people poorly, which highlights the need for protection. The industry often pushes people to their limits, burns them out, and then lays them off. When union activity arises, it feels like the industry has brought it upon itself through its treatment of employees.”

Parts of the gaming industry have successfully unionized, including Sega of America and several teams within Microsoft/Xbox, such as Zenimax and Blizzard. So why didn’t it work at Double Fine? The answer varies depending on who you ask. I spoke with 15 current and former Double Fine employees involved in the union discussions, reviewed Slack messages from the brief but intense two-week campaign, and talked to Schafer at PAX West to gain insight into what transpired.

Six months later, it’s clear that labor organizing at one of the gaming industry’s most progressive studios has stalled, leaving behind feelings of grief, confusion, and betrayal.

Founded by Schafer in 2000, Double Fine has long been recognized for its warm, creative, and progressive culture. This has been showcased through the Double Fine Adventure! and PsychOdyssey documentaries, which are notable for their transparency and the mainstream attention they garnered for an indie studio. These series chronicle Double Fine’s journey from 2012 to 2021, including the development of Broken Age and Psychonauts 2, and the studio’s acquisition by Microsoft in 2019.

However, no documentary captures everything, especially organizing efforts, which are typically conducted in secrecy. The push for unionization at Double Fine began years ago, sparked by Game Workers Unite distributing flyers at GDC 2018 and discussing the benefits of unions. The momentum increased significantly after Schafer’s 2019 GDC speech and grew further following Microsoft’s acquisition of the studio. Many employees felt the need to protect themselves and their colleagues from potential interference from the new parent company.

However, some had specific concerns about working at Double Fine, particularly after a meeting in the fall of 2019, referred to by multiple sources as the “Bad Meeting.” This meeting, convened by Schafer to address concerns raised by programmer Amy Price about potential crunch to meet deadlines for Psychonauts 2, became tense. Observers noted that some attendees seemed to “dogpile” on Price, dismissing her concerns and framing their disagreements as personal attacks. While some defended her, the atmosphere was described as hostile, with one attendee likening it to a “witch trial.”

[Then-senior producer Kevin Johnson claimed on Twitter in 2021 that Psychonauts 2 was developed with “no crunch,” but multiple sources I spoke to asserted that this experience was not universal across the studio.]

Many employees felt this meeting exemplified a broader power imbalance at Double Fine, where those with less influence struggled to voice serious concerns. This experience solidified for some the belief that a union was necessary to provide a better avenue for airing grievances.

However, the initial attempt to organize at Double Fine didn’t progress far. During a union-related meeting, tensions flared between one initially supportive individual and others, leading to emotional fallout that left several organizers disheartened and hesitant to continue. The onset of the COVID-19 pandemic in 2020 further disrupted organizing efforts as everyone transitioned to remote work.

Discussions about unionization resumed in 2024, initially among a small group considering revisiting the idea. However, in late 2025, Schafer announced that all new hires would need to be based in the Bay Area, and existing Bay Area employees were encouraged to return to the office twice a week. While not an official mandate, some felt an unspoken pressure to comply after years of remote work, reigniting interest in unionization.

As discussions progressed, concerns about Microsoft’s ownership resurfaced, along with fears regarding generative AI, potential mass layoffs, and the possibility of Double Fine being shut down like other studios. Some employees who had positive experiences at Double Fine viewed unions as a means to safeguard their workplace, while others cited unresolved issues like sexual harassment and bullying that had lingered for too long after being reported.

“As an organizer, you hear about a lot of things happening to your colleagues that shouldn’t happen anywhere,” one organizer shared.

Schafer, as the founder and head of Double Fine, was a beloved figure both internally and externally. His casual, charismatic demeanor drew fans and fostered a positive atmosphere within the studio. However, many felt that his opinion held significant weight, creating a sense of pressure around the union effort. Organizers recognized that gaining Schafer’s approval could be pivotal for their cause.

While they considered reaching out to senior staff close to Schafer for insight into his stance, this proved challenging. Those individuals were often managers and thus ineligible for union membership, making discussions risky. The potential for retaliation from Microsoft or management loomed large, especially if any information about union efforts leaked prematurely.

Determining eligibility for the union was another hurdle. Typically, this is worked out between workers and management after the union goes public, but organizers needed to make educated guesses beforehand. The blurred lines between bosses and workers in modern tech environments complicated this process, particularly at Double Fine, where many staff had held managerial roles at some point, even if they had no direct reports.

As organizers navigated these complexities, their group of eligible supporters gradually grew. CWA recommends building support to around 80 percent before going public, as a supermajority helps protect against potential union-busting efforts. By the time Double Fine’s union went public, they had support from approximately 75 percent of those believed to be eligible, though this represented just under half of the studio’s total employees.

The timing of Double Fine’s union drive coincided with a unique moment for both the studio and CWA. In 2022, Microsoft had announced a “labor-neutrality agreement” with CWA ahead of its acquisition of Activision Blizzard, pledging to remain neutral when employees expressed interest in unionizing. This agreement, however, expired in 2025, and as Double Fine’s organizers prepared to go public, negotiations for renewal had stalled.

Despite this, Double Fine workers were encouraged to proceed with their petition, and CWA reached out to Microsoft lawyers for a temporary commitment to neutrality. However, organizers feared that this outreach might alert Microsoft to their plans, prompting them to announce their petition sooner than intended on May 7, 2026.

The union was announced internally via a vision statement posted on the company’s Slack, signed by the names of union supporters, most of whom had also signed authorization cards. The petition stated:

“The video games industry is always changing, and we appreciate all the ways in which studio leadership has had our backs in the face of that chaos. Through unionization and collective bargaining, we can do things that leadership alone cannot, with a transparent and democratic process that advocates for workers in all disciplines: Creative, technical, production, and operations.

“We believe this is the next logical step to making Double Fine the best it can be in all respects: a workplace where we can build careers we are truly proud of; a unique creative studio with a loving, global fanbase; a beacon within our industry, showing the world that games are made by human beings; and finally, a place where everyone looks out for one another.

“We are stronger together, and that is how we intend to build our union.”

The first response in Slack came 18 minutes later from a senior, ineligible employee, questioning whether the union would be voted on by all employees and expressing surprise at the announcement. As the hours passed, more employees began to react, with many expressing curiosity but also concern. Some voiced discomfort over not being informed about the union in advance, suggesting that all employees should have a say in the decision, regardless of eligibility.

On May 11, the studio held its first all-hands meeting since the union announcement. Schafer read a prepared statement—something he rarely did—explaining that a union petition had been filed and that Double Fine managers needed to remain neutral. Many attendees noted that he appeared emotional and rattled as he spoke. Following the meeting, he circulated a “Unionization Frequently Asked Questions” document to staff.

In the days that followed, experiences varied widely among employees based on their stance on the union. Supporters reported unsettling interactions with coworkers who opposed the union, leading to feelings of being attacked. Some managers expressed concerns about their ability to communicate with employees, while others felt they were being ostracized by colleagues who had previously been friendly.

A Slack channel was created for union discussions, limited to non-managers. Many posts expressed fear that the union was excluding a significant portion of employees. One particularly vocal anti-union employee shared snippets of the National Labor Relations Act, often misinterpreting them, and claimed the union effort had created an “unsafe working environment.”

Union organizers attempted to correct misinformation but felt increasingly under attack. As tensions rose, some who had signed authorization cards began to withdraw their support, citing the negative atmosphere and reactions from colleagues as reasons for their retraction.

On May 20, just two weeks after the initial announcement, the organizing committee withdrew its petition, stating:

“When it became open knowledge that a majority of union-eligible workers decided to see more rights and protections through organizing our union together, that was met with negative reactions and then pressure quickly rose. We care about our coworkers more than anything, that’s why we organized.

“We want people to have the time and space to decompress and allow for more productive conversations in the future. With that in mind, we are pulling our petition with the National Labor Relations Board.”

The message was signed by eight organizing committee members, who later faced layoffs.

This setback for CWA’s labor organizing efforts came amid broader challenges within the gaming industry. Just weeks after the petition withdrawal, Xbox CEO Asha Sharma announced a need for a “reset,” citing overspending on studios. Reports soon surfaced that Double Fine was at risk of closure if it couldn’t operate independently. A few weeks later, Xbox announced layoffs affecting 3,200 employees, including 1,600 immediately, as part of a massive restructuring that would see Double Fine and three other studios go independent.

As tensions over the union drive lingered, supporters felt the studio’s once-warm atmosphere had turned cold, with ongoing ostracization from some colleagues. Others disagreed, suggesting that discussions had been respectful and that differing opinions were expected.

The spin-off from Microsoft raised new fears about layoffs and the studio’s future. On July 28, 23 employees were laid off, including all eight organizing committee members. Many of those laid off had been supportive of the union, even if they were ineligible to join.

Schafer addressed accusations of targeting union supporters in layoffs, stating, “We didn’t target people for layoffs…we’ve always prioritized who we most desperately need to make these games. We’ve never retaliated against anyone for anything.”

Most laid-off employees reported generous severance packages, which they attributed to Schafer’s negotiations with Microsoft. However, some expressed frustration that management didn’t intervene to ease tensions during the union discussions.

In the months following the petition withdrawal, many who had supported the union kept a low profile, fearing further retribution. “It feels like they want you to leave,” one person said. “And it’s working. I’m looking for other jobs.” Unfortunately, the gaming job market was tight.

Double Fine recently completed its crowdfunded Amnesia Fortnight, raising over $678,000 to greenlight the winning game, Plot Armor. A successful release could provide the studio with some breathing room, but without it, Schafer indicated that Double Fine’s financial runway was “a matter of months.”

In a conversation with Schafer at PAX West, he reflected on the events surrounding the union drive. When asked if he would have approached things differently, he said, “We were all just doing the best we can. I don’t know. I mostly stayed out of it. I had to stay out of it. I couldn’t have changed a lot of stuff I did… I think it’s been a very trying year. And I think we did the best we could, considering we’re still alive and we still have a lot of people who are very happy at the company.”

With many organizers gone and the internal atmosphere strained, the prospect of a Double Fine union seems unlikely in the near future. Yet, those who organized the effort expressed no regrets about trying to form a union.

“We need unions, more than ever,” one organizer concluded. “If you see people being mistreated in your office, you should unionize. Unions are the bare minimum we have to fight against the issues we face. We can be a collective force when things get tough.

“Some people didn’t feel they needed a union at Double Fine. But others did. If you’re for unions and labor rights, what’s the harm in supporting that? If you think something might happen to you, it suggests you know things aren’t right but are too afraid to stand up for your coworkers.”