Tim Schafer Says Greed Is His Only Theory for a 4-Year Game Industry Slump
The Double Fine founder said AAA layoffs have been especially harsh, while indie studios can run out of money after shipping a game.
Tim Schafer says he no longer understands why the video game industry keeps losing jobs despite people playing games and companies making money. The Double Fine founder expected layoffs and hiring to move in cycles, but said the downturn has lasted for about four years without the recovery he expected.
Schafer discussed the industry’s finances during a BBC interview about Double Fine’s departure from Xbox and return to independence. The transition included the loss of 23 employees at the end of July as the studio adjusted to operating on its own. Schafer said Double Fine did not know Xbox was considering shutting it down until online rumors surfaced. “We have heard the rumors, then the rumors were true, and then we decided we wanted to go it alone, and worked in negotiations, and now we have sprung forth into the world again,” he said.
He explained that he once assumed layoffs would be followed by rehiring when studios needed people to finish their games. That pattern has not returned in the way he expected, even though games continue to attract players and generate money.
“I don’t understand the economics of making games, to be honest,” Schafer said. “I just assume it’s, like, someone is being greedy somewhere. But I hope it is a cycle, and I hope it bounces back.”
AAA layoffs and indie finances pose different risks
Schafer said the pressure has been harsher in AAA development, where employees can lose their jobs shortly after completing a game. He also stressed that the indie space is not a safe harbor. Smaller studios may avoid the same kind of corporate layoffs, but they can still run out of money after shipping a project.
He was careful not to dismiss AAA creativity while making that comparison. Schafer said there is “a lot of life and excitement and creativity in the games industry now,” especially among indie teams, while acknowledging that many AAA developers also make creative work. He also said people often enter games because they feel there is no other path for them, rather than because the industry offers a dependable lifestyle. His concern is that developers should be able to focus on their craft without constantly wondering whether they will still have work or be able to support their families.
Why Schafer fought to keep Double Fine alive
Elsewhere in the interview, Schafer described initially believing Double Fine might be closed before realizing the studio had other options. “Do you want to die? No, we want to live,” he said, adding that the team’s desire to survive helped focus its efforts.
Schafer pointed to Double Fine’s range of projects, from the smaller Thank You Bus Driver to the larger Psychonauts 2, as part of what makes the studio worth preserving. Its return to independence has given that argument immediate practical weight, with the team now balancing creative ambitions against the financial risks he described across the wider industry.
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