Double Fine regains Psychonauts 2, Keeper and Kiln rights after Microsoft split
After separating from Microsoft’s Xbox gaming division following the July 6 restructuring, Double Fine Productions went through a tumultuous period, cutting 23 employees to stay afloat. Now, the studio’s outlook is improving: Double Fine has retained its IPs and titles and will receive revenue directly from Psychonauts 2, Kiln, and Keeper, though storefronts are still catching up.
Studio founder Tim Schafer recently confirmed on the Kinda Funny Games Daily podcast that the IP and publishing rights for Psychonauts 2, Keeper, and Kiln fully reverted to Double Fine after the July 6 Xbox split.
Back to being a publisher in principle
Now, Double Fine gets to keep the revenue share a publisher normally obtains. However, Steam still hasn't caught up because Double Fine’s games are still listed as published by Xbox Game Studios, as the account transfer process is still underway.
The development comes just three weeks after Double Fine cut 23 jobs to sustain itself independently. Rather than seeking a new publisher, the studio is preparing a Kickstarter campaign for future projects.
Steam still lists Xbox as the publisher for Psychonauts 2, Kiln, and Keeper because the titles were originally published under Microsoft’s account, with Xbox credited as publisher. Under traditional first-party terms, Xbox took a cut of revenue before passing the remainder to Double Fine, but that is expected to change soon.
Schafer said Double Fine’s arrangement with Xbox is over: “Everything we got back, the transfer of the IP came back to us. We have the publishing rights 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.”
Turning to Kickstarter for funding
Double Fine’s Kickstarter campaign, centered on its internal game jam Amnesia Fortnight, is slated to launch later this month. Backers will vote on which prototype becomes a small commercial indie game.
Regaining its IPs, including Kiln and Psychonauts 2, will route more cash flow to Double Fine than it received in June. Correcting storefront listings and launching a crowdfunding campaign are now among the studio’s biggest bets for closing that gap. Time will tell if Double Fine will bounce back stronger than ever with potential new hits.
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