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No longer part of the Microsoft first-party umbrella, Psychonauts 2 developer Double Fine and South of Midnight studio Compulsion Games have thanked the Xbox maker for the seven years under its wing.
In addition, both teams confirm they have taken the IP rights to their games with them. Therefore, Double Fine still has control of Psychonauts, Keeper, and Kiln, while Compulsion Games remains the owner of We Happy Few and South of Midnight.
This means neither studio needs Microsoft to develop new entries in those franchises; they could self-publish or partner with someone else in the industry.
A social media statement from Double Fine said: "We're thankful to everyone at Xbox for seven years together, and for working with us to reach an outcome which preserves our history and culture, and returns ownership of our games to us." It then thanked everyone for the messages of support, as it was named as one of the studios Microsoft may cut in the weeks leading up to today's layoffs.