If you're having problems with the game, disable it in Xfire, or just close the program altogether. (As usual, for a newly launched game) Xfire just doesn't play well with the game right now. They'll probably fix it in a coming patch and everyone will be happy once again.
So, for those who don't know:
To disable Xfire ingame go to.
Tools>Options>Games tab>Select Game from list (after it finishes scanning) and click the checkbox that says "Disable Xfire In-Game"
If in one of the coming updates you see that they've fix the problem with Demigod, you can always turn it back on.