Tim Schafer Says Asha Sharma’s Shifting Xbox Vision Forced Double Fine to Go Independent

Double Fine’s exit from Xbox has been one of the more dramatic storylines to come out of this year’s round of Microsoft studio shake-ups, and Psychonauts creator Tim Schafer is now explaining exactly why it happened. In a recent interview with Bloomberg, Schafer traces the decision back to a visit from Xbox CEO Asha Sharma, whose shifting priorities for the platform, he says, made going independent feel unavoidable.

Why Double Fine Walked Away From Xbox

Asha Sharma | Credits: Microsoft Blog

Schafer describes Double Fine’s original arrangement with Xbox as a simple, shared goal: put well-made games on Game Pass. He suggests that this alignment worked until Sharma stepped in and began reshaping what she wanted from the platform. He frames her visit to the studio as arriving in “listening mode,” but says it quickly became clear that a bigger shift was inbound.

In his telling, no realistic level of profitability would have been enough to keep Double Fine inside Microsoft once that new direction was decided. After realising this, rather than waiting to see how the changed vision plays out, the studio chose to step away and run independently.

The game designer framed the decision as taking ownership of the studio’s future rather than leaving it in someone else’s hands, saying:

“No one puts Double Fine out of business except for me. 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.“

He also commented on how he processes the broader wave of layoffs across the games industry, likening his position to the captain of a small fishing boat who can’t control the ocean but can still choose which way to steer.

Double Fine Starts as an Independent Studio

Tim Schafer now runs an independent studio | Credit: Double Fine

Independence hasn’t come without its own costs. A few weeks after separating from Xbox, Schafer laid off 23 Double Fine staff, a move he described as necessary for the studio’s survival. He notes the team tried to keep those employees for roughly three months before making the call, which is a more deliberate process in contrast to the immediate cuts Microsoft has made elsewhere in its games division.

The studio’s recent releases haven’t made the transition any easier. Keeper earned strong reviews after launching in 2025, but 2026’s Kiln has struggled to hold onto a Steam audience, even though it’s also a day-one Game Pass title. Still, the game designer maintains that the studio never set out to make a game expecting it to underperform.

He argues Keeper’s art-house look hides broader mass-market appeal he believes the game could still find with the right audience.

What do you think about Double Fine’s move as a studio going independent? Drop your opinions in the comments below and let us know!