E3 2019: Microsoft acquires Psychonauts 2 dev Double fine

Developer joins growing number of in-house studios

Date Type Companies involved Size
June 9th, 2019 acquisition Double Fine
Not disclosed
E3 2019: Microsoft acquires Psychonauts 2 dev Double fine

Microsoft has acquired Psychonauts developer Double Fine Productions.

News of the deal was revealed during Microsoft's E3 2019 press conference. Double Fine, founded by Tim Schafer, is currently working on Psychonauts 2. The game will be available on Xbox Game Pass at launch, as with all titles developed by Xbox Game Studios.

Terms of the deal were not disclosed .

Double Fine joins a growing list of in-house Xbox studios. At last year's E3 it announced the acquisitions of State of Decay developer Undead Labs, Forza Horizon studio Playground Games, Hellblade creator Ninja Theory and We Happy Few outfit Compulsion games.

You can see all our E3 coverage right here.

Head of Content

Craig Chapple is a freelance analyst, consultant and writer with specialist knowledge of the games industry. He has previously served as Senior Editor at, as well as holding roles at Sensor Tower, Nintendo and Develop.