The story
Founded by Tim Schafer on Jul 2000.1
Double Fine was founded by former LucasArts developer Tim Schafer, together with some colleagues from LucasArts, in July 2000. In the years prior, LucasArts had started to shift development away from adventure games into more action-oriented ones as part of the general trend in the gaming industry. Schafer, who had just finished producing the adventure game Grim Fandango, a title which met with critical praise but was a commercial disappointment, saw others leaving LucasArts and was unsure of his own position there. He was approached by colleagues suggesting they launch their own studio to develop their own titles. Schafer departed LucasArts in January 2000, co-founding Double Fine later that year.
Schafer started Double Fine with programmers David Dixon and Jonathan Menzies in what was once a clog shop in San Francisco. After several months of working on the demo for what would become Psychonauts, a mixture of personnel from the Grim Fandango development team and other new employees were slowly added to begin production.
After the implementation of Amnesia Fortnights in 2011 as a means to find new titles to publish, the company is split into a number of teams with about 15 people each. Each team has the capabilities of fully developing a small game on its own, but for its larger titles, like Psychonauts 2, the company temporarily merges two or more of these teams, and with the option of unmerging the teams once the project is finished.
The company remains situated in San Francisco. The name "Double Fine" is a play on a sign on the Golden Gate Bridge that used to display "double fine zone" to warn motorists that fines on that stretch of road were double normal rates. Double Fine's logo and mascot is called the Two-Headed Baby, frequently abbreviated 2HB, an abbreviation also used for Moai, an integrated development environment. The Double Fine website is also host to seven webcomics, which are created by members of Double Fine's art team and are collectively referred to as the Double Fine Comics.
On June 9, 2019, during Microsoft's press conference at E3 2019, it was announced that Double Fine had been acquired by the company and was becoming part of Xbox Game Studios. According to Schafer, through the acquisition, Double Fine would be able to retain its independent nature but would not have to struggle with finding publishers for its games, a problem it has had in its past. Schafer spoke to Microsoft's Xbox Game Pass, a games subscription service for Microsoft Windows and Xbox users, as one favorable aspect of the acquisition. Schafer felt many of Double Fine's games, particularly Psychonauts and its sequel, do not have an aesthetic that people would necessarily pay the full price for, but the subscription approach of Game Pass lowers that barrier and would potentially get more people to try the game. Thus, Schafer felt that being acquired by Microsoft would allow the studio to continue to develop experimental games and allow these projects greater exposure. A month ahead of the release of Psychonauts 2, in July 2021, Schafer stated he was happy with Microsoft's handling of Double Fine; he called the acquisition a "limited integration" with Double Fine retaining all control on the creative elements while leaving the financial issues up to Microsoft to manage, and left the studio able to focus their creative skills on finishing the game without feeling any budgetary crunch. Double Fine and 2 Player Productions released PsychOdyssey, a 22-hour documentary on the making of Psychonauts 2 in February 2023.
Schafer said in August 2025 that the studio is presently working on original intellectual properties, such as Keeper, which has Lee Petty as its lead developer, and had no current plans for releasing sequels such as Psychonauts 3 or Brutal Legend 2 despite requests from players for these.
Double Fine submitted its petition to unionize within the CWA (Communications Workers of America) on May 7, 2026.
In June 2026, Jason Schreier of Bloomberg News reported that multiple studios at Xbox Game Studios, including Double Fine, were in negotiations for independent buyouts and separation from the division to avoid being shuttered. The studio laid off 23 out of around 90 employees in July 2026 following this transition, with Schafer saying "Only the survival of our studio would ever make us consider such a painful action. Our transition to becoming an independent company also means becoming a size that we can sustain."
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As part of a major restructuring of the Xbox division on July 6, 2026, Double Fine was released from Xbox Game Studios and returned to being an independent studio. Double Fine retained all rights to games and intellectual property during this move.
From Wikipedia’s article on Double Fine, shared under CC BY-SA 4.0.4