Xbox is closing Compulsion Games, the developers of We Happy Few and South of Midnight. Following a recent message from Xbox leader Asha Sharma announcing company-wide changes – including layoffs – to improve profitability, Xbox has made its first major decision: shutting down Compulsion Games.
According to Kotaku, Xbox is planning to close Compulsion Games. While Xbox hasn’t officially confirmed this yet, it would be a significant loss for Xbox Game Studios. Xbox purchased Compulsion in 2018, and the studio recently released its first game under Xbox’s publishing label, South of Midnight, in 2023.
It’s sad that Xbox is closing Compulsion Games, but not entirely unexpected. Their game, South of Midnight, received only lukewarm reviews – a 77/100 on Metacritic – and didn’t sell well despite being in development for a long time. Even releasing it on PlayStation 5 and Nintendo Switch 2 didn’t significantly improve its performance, making it an overall disappointment for the studio.
It’s unclear if the recent closure of Compulsion Games is an isolated incident, or if more Xbox game studios will be affected. Based on what Xbox has said previously, significant layoffs are expected soon, which could lead to further studio closures. While we hope this isn’t what happens, Xbox fans should be prepared for potentially more bad news.
Xbox hasn’t yet said anything publicly about closing Compulsion Games. We will share any official information as soon as it becomes available.
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2026-06-15 20:17