Microsoft reportedly closing Compulsion Games after one post-acquisition release

Eight years after Microsoft acquired it, Compulsion Games is reportedly being closed. Kotaku says the studio, estimated at over 90 employees, is the latest casualty of Microsoft’s downsizing and that deeper layoffs at Xbox are expected in July. Since the 2018 buyout Compulsion has released only one game: South of Midnight.

Compulsion senior writer Zaire Lanier posted hours before Kotaku’s story that they were “looking for work,” and later shared the report along with posts mourning the studio. The news follows the departure of Xbox Game Studios head Craig Duncan and comes amid thousands of layoffs across Microsoft in recent years.

South of Midnight, Compulsion’s third game, earned strong reviews on Steam and consoles, saw PS5 and Switch 2 versions arrive this year, and won Peabody and BAFTA awards. Reviews called it a spellbinding tale somewhat let down by predictable gameplay; We Happy Few was the studio’s notable release before the Microsoft acquisition.

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