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EuroGamer
Days after leaving Xbox, South of Midnight developer Compulsion Games broadcasts that it's looking for work
Compulsion Games has announced it is looking for new work and collaboration opportunities shortly after separating from Microsoft amid extensive layoffs in the Xbox division. The studio has retained rights to its previous IPs, including 'South of Midnight'. With the gaming landscape shifting due to Xbox's cost-cutting measures resulting in significant layoffs, the studio's ability to secure new projects may be challenged. Compulsion Games' proactive outreach reflects the realities of independent studio operations.
MonitorConfidence: MediumShort term horizon
Published 14 Jul 2026, 10:50 UTC2 min read
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Summary
TL;DR
- Compulsion Games seeks new collaboration opportunities post-Xbox split.
- The studio retains rights to its existing IPs like 'South of Midnight'.
- Microsoft's Xbox layoffs amount to 1,600 cuts, impacting all areas.
- Industry peers like Double Fine and Arkane are also reassessing their futures.
- Funding and publisher interest could prove challenging in current market conditions.
Interesting facts
- Compulsion's announcement suggests a potential shift from game development to collaboration.
- The studio was part of Microsoft's recent mass layoffs affecting 1,600 employees in Xbox.