As Xbox studios brace for a "reset," South of Midnight developers from Compulsion Games begin looking for work

South of Midnight developers have begun to leave Compulsions Games en masse, as corporate owner Xbox starts a big "reset" of the business. Multiple reports recently claimed that several Xbox Game Studios were bracing for mass layoffs or even full closures, with Double Fine (Psychonauts, Brutal Legend), Ninja Theory (Hellblade, Enslaved) and Compulsion Games all apparently in negotiations with the company over their future. These studios were reportedly in talks to potentially spin off and secure an independent exit from Xbox in an effort to avoid a shutdown. For now, at least, droves of Compulsion Games staffers have already left the company and are now looking for work. "After a couple wonderful years at Compulsion Games (Xbox Game Studios), I'm looking for my next opportunity," narrative designer Bijan Stephen writes on LinkedIn. "I'm very grateful for my time there, and for what it taught me: how to be a better collaborator, how to be more open to change, and how to go from concept to execution at a high level – among many other things. I'm very, very grateful to the amazing people there, who taught me so much about what it takes to make a truly beautiful game."The studio exits extend to almost all departments, from an animator who had been with the developer for six months to an environment artist employed at the company for five years. The wide-ranging departures range from junior developers to senior ones and beyond. "After 5 unforgettable years at Compulsion, the time has come to look for a new adventure," principal game designer Thomas de Rego writes. "In an unexpected turn of events, I've officially turned on the "open to work" banner," principal level designer of six years, Mike Sklavounos says. The fate of Compulsion Games as a whole is still up in the air, though the studio would need to buy itself out from its parent company or reach a deal with a separate party – both options aren't ideal for the existing employees looking for clear answers and stability. Microsoft's fiscal year won't end until June 30, at which point we should start to see and hear how deep these Xbox cuts go, however. Here's hoping the devs land on their feet. We've reached out to Xbox for comment, and will update this article if we receive a response. Compulsion Games itself was acquired by Microsoft in 2018 as part of the company's shopping spree. At the time, the Canadian game developer had put out perspective-shifting noir platformer Contrast and was gearing up to release trippy, satirical survival sim We Happy Few. Both were drenched in interesting vibes, as was last year's South of Midnight, a folkloric action-platformer that we called a "spellbinding tale." In the meantime, here are the best Xbox Series X games you can play today. [/url]

Jun 25, 2026 - 18:18

As Xbox studios brace for a "reset," South of Midnight developers from Compulsion Games begin looking for work

South of Midnight developers have begun to leave Compulsions Games en masse, as corporate owner Xbox starts a big "reset" of the business.

Multiple reports recently claimed that several Xbox Game Studios were bracing for mass layoffs or even full closures, with Double Fine (Psychonauts, Brutal Legend), Ninja Theory (Hellblade, Enslaved) and Compulsion Games all apparently in negotiations with the company over their future. These studios were reportedly in talks to potentially spin off and secure an independent exit from Xbox in an effort to avoid a shutdown.

For now, at least, droves of Compulsion Games staffers have already left the company and are now looking for work.

"After a couple wonderful years at Compulsion Games (Xbox Game Studios), I'm looking for my next opportunity," narrative designer Bijan Stephen writes on LinkedIn. "I'm very grateful for my time there, and for what it taught me: how to be a better collaborator, how to be more open to change, and how to go from concept to execution at a high level – among many other things. I'm very, very grateful to the amazing people there, who taught me so much about what it takes to make a truly beautiful game."

The studio exits extend to almost all departments, from an animator who had been with the developer for six months to an environment artist employed at the company for five years. The wide-ranging departures range from junior developers to senior ones and beyond.

"After 5 unforgettable years at Compulsion, the time has come to look for a new adventure," principal game designer Thomas de Rego writes.

"In an unexpected turn of events, I've officially turned on the "open to work" banner," principal level designer of six years, Mike Sklavounos says.

The fate of Compulsion Games as a whole is still up in the air, though the studio would need to buy itself out from its parent company or reach a deal with a separate party – both options aren't ideal for the existing employees looking for clear answers and stability. Microsoft's fiscal year won't end until June 30, at which point we should start to see and hear how deep these Xbox cuts go, however. Here's hoping the devs land on their feet. We've reached out to Xbox for comment, and will update this article if we receive a response.

Compulsion Games itself was acquired by Microsoft in 2018 as part of the company's shopping spree. At the time, the Canadian game developer had put out perspective-shifting noir platformer Contrast and was gearing up to release trippy, satirical survival sim We Happy Few. Both were drenched in interesting vibes, as was last year's South of Midnight, a folkloric action-platformer that we called a "spellbinding tale."

In the meantime, here are the best Xbox Series X games you can play today.

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