Xbox plans to close Compulsion Games

Xbox plans to shut down Compulsion Games, the studio behind Peabody Award-winning South of Midnight and We Happy Few. It is unclear how many staff will be affected; the studio’s LinkedIn lists about 90 employees, though the actual total is thought to be higher, and multiple people have posted on social media looking for work.

Two months ago the studio’s talent lead was advertising openings on LinkedIn for work on a “fascinating, intriguing, brand new IP.” One person at the studio says Compulsion leadership is in ‘negotiations’ with Microsoft over the studio’s future, but the details of those talks have not been disclosed.

The announcement comes days after Xbox CEO Asha Sharma and Microsoft Game Studios head Matt Booty sent an open email outlining recent financial and logistical struggles, amid reports that mass layoffs were expected. Earlier the same day, The Game Business reported that head of Xbox Game Studios Craig Duncan had resigned after less than two years in the role.

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