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EuroGamer
Amid reports Xbox is preparing for significant layoffs, a wave of staff at South of Midnight developer Compulsion Games announce their departure
This week, numerous employees from Compulsion Games, the studio behind 'South of Midnight', have announced their departures as Xbox reportedly prepares for significant layoffs. Compulsion Games, acclaimed for its previous title 'We Happy Few', is one of the studios currently identified as potentially at risk of restructuring or closure due to Xbox's operational changes. This could have serious implications for ongoing projects and the future stability of the studio.
MonitorConfidence: HighImmediate horizonTalent displacement risk: High
Published 25 Jun 2026, 14:51 UTC1 min read
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Summary
TL;DR
- At least a dozen staff members have left Compulsion Games.
- Departures follow reports of planned Xbox layoffs.
- Compulsion Games previously developed 'We Happy Few'.
- The studio recently won a BAFTA for 'South of Midnight'.
- Xbox's restructuring may also affect other studios like Double Fine.
Interesting facts
- Compulsion Games was acquired by Microsoft in 2018.
- The studio's game 'South of Midnight' earned critical acclaim.
- Layoffs signal a major shift within Xbox's organizational structure.