Double Fine Productions, the Microsoft-owned studio behind Psychonauts and the recently released Kiln, filed a petition with the National Labor Relations Board on May 7, 2026. The petition involves approximately 42 full-time and part-time employees seeking representation from the Communications Workers of America. This move aims to preserve commitments to creative excellence, diversity, inclusion, and worker quality of life, according to a CWA statement.

Microsoft has adopted a neutral position on the matter, agreeing not to interfere with the workers' organizing efforts. The CWA noted appreciation for this stance, while also pursuing voluntary recognition alongside the NLRB election process. This development follows similar unionizations at other Microsoft studios, including id Software in December 2025 and Diablo developers in August 2025, marking Double Fine as reportedly the 14th such team under Microsoft.

Community reactions on platforms like Reddit reflect a measured discourse, with some users viewing unions as a buffer against layoffs and others questioning their efficacy in preventing studio closures amid broader industry shifts. Xbox strategy changes and post-merger layoffs provide additional context to these efforts. The process now proceeds through standard NLRB channels, in a manner consistent with prior cases.