As the Xbox Era Ends, a New Announcement Suggests Workers Are Playing It Safe

Double Fine—the Xbox-owned studio celebrated for titles like Psychonauts 2, Kiln, and Keeper—has officially moved to unionize. This organizational push arrives just months after Asha Sharma stepped into the role of Xbox CEO, signaling that employees across the gaming division are increasingly seeking formal protections amidst a backdrop of significant strategic realignment.

As reported by Aftermath, Double Fine filed a petition with the National Labor Relations Board on May 7 to establish a union. Supported by the Communications Workers of America (CWA), the bargaining unit will represent all 42 of the studio’s full-time and part-time staff members.

In a formal statement, the CWA highlighted that the studio is organizing to “preserve and extend the studio’s commitments to creative excellence, diversity and inclusion, and worker quality of life.” This development follows a growing trend within Microsoft’s gaming arm, with teams at Blizzard Entertainment, Raven Software, and ZeniMax Online Studios having successfully unionized in recent years. Currently, the CWA notes that Microsoft has maintained a neutral stance, pledging not to obstruct the employees’ right to collective bargaining.

The unionization of Double Fine is particularly noteworthy given its unique niche within Xbox Game Studios and the recent leadership overhaul at Microsoft. Since taking the reins in February, CEO Asha Sharma has implemented sweeping structural adjustments, including a restructuring of the Xbox leadership team, the cancellation of a proposed Gaming Copilot AI, and significant changes to Xbox Game Pass—most notably removing Call of Duty from the service while lowering the overall subscription price.

Acquired during Phil Spencer’s tenure, Double Fine was positioned to act as a boutique, indie-spirited developer capable of churning out unique content for Game Pass. However, the studio’s long-term trajectory under the current Xbox regime remains ambiguous, especially as projects like Keeper and Kiln lack the massive mainstream profile of tentpole franchises like Halo or Gears of War.

Given this climate of volatility, it is a proactive move for the Double Fine workforce to secure union-backed protections. While the studio has released two titles in the last year, recent comments from Xbox’s Matt Booty in an interview with Game File confirm that a third project is currently in the works.

Source: Polygon