Compulsion Games May Be The First Studio To Fall In Xbox’s Restructuring Plans – Rumor

I remember not long ago really loving South of Midnight. We thought it was a fantastic game, and honestly, we were willing to brush off a few small issues because it was just that good.

It’s been just over a year since the game’s release, and now there are concerns that Compulsion Games, the studio that created it, may be among those Xbox plans to shut down. This follows reports of potential layoffs that have surfaced this week.

Kotaku reports that the studio’s leaders are talking with their parent company, but it’s unclear what the outcome will be. Following a period of increased hiring in April, some developers are now looking for new jobs, suggesting they anticipate potential problems.

It’s definitely sad to see Compulsion close, and we wish everyone who worked there all the best for their future careers. As for which other studio might be affected, we don’t have any inside information – we’ll have to wait for an official announcement. Right now, it looks like Obsidian and Rare are the only ones secure.

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2026-06-16 00:41