Tim Schafer: "I Don't Understand the Economics of Gaming Anymore"

Double Fine founder Tim Schafer says the games industry has been down for four years and he doesn't know why, as Microsoft's latest layoffs hit 3,200 Xbox employees.

Ever feel like the games industry just doesn't make sense anymore? You're not alone — Tim Schafer feels the same way.

The Double Fine founder and industry legend told BBC News that he straight-up doesn't understand the economics of making games in 2025. "I don't understand the economics of making games to be honest," Schafer said. And honestly, who can blame him?

Here's the context: Microsoft's latest round of layoffs will see 3,200 Xbox employees lose their jobs before the end of the 2027 fiscal year. That's on top of Double Fine, Compulsion Games, and Undead Labs all going independent from the publisher. Ninja Theory is reportedly at risk of closing after multiple purchase attempts fell through, and Arkane's future is up in the air.

Schafer remembers when layoffs used to follow a pattern. "For years [I] thought I understood them because there are layoffs, which is bad. And then the people who make games realize, 'Oh, we need people to make games,'" he explained — which meant studios would hire developers back. But this time? "It's been down for like four years and I don't know why." That's the part that stings. "People are playing games and people are making money, so I don't know why there's a big loss of jobs. I just assume it's like, someone is being greedy somewhere," Schafer added. "I hope it is a cycle, and I hope it bounces back."

Double Fine hasn't been immune either — the studio had to lay off staff after going independent. But Schafer is fighting back in his own way: the studio is turning to Kickstarter to fund its next "small" game, with Schafer declaring, "no one puts Double Fine out of business except for me." That's the kind of energy we need right now.

Despite everything, Schafer isn't doom-and-gloom about gaming's future. "I think there's a lot of life and excitement and creativity in the games industry now; especially in the indie space," he said, though he's quick to note he isn't "one of those snobs" who claims AAA games can't be creative. His real issue is with how AAA treats its people. "It's been a much more violent place to work in AAA," Schafer explained. "Your work is often not as rewarded, because you will get laid off as soon as you finish your game." We've seen it happen with Star Wars Zero Company and Gears of War: E-Day staff being laid off after their games went gold — and Battlefield 6 was so successful that EA CEO Andrew Wilson got a massive bonus shortly after the developers who made the game were let go.

So what do you think — is Schafer right that someone's being greedy, or is there a bigger shift happening in gaming? And will you be backing Double Fine's next Kickstarter?