Media: XBOX May Close Compulsion Games — Studio in Negotiations
Is Microsoft about to shut down Compulsion Games? Kotaku says its sources point that way. The story: the studio’s fate is being debated inside Microsoft’s gaming arm amid another round of layoffs. Studio mgmt is reportedly in talks with the Co. right now. Odd detail: two months back the head of recruitment, Joe Palin, was posting for programmers to staff a new franchise — a project that today looks like it may be on hold.
A quick sketch of the studio’s output, not a resume. Founded in 2009, the devs put out the shadowy puzzle game Contrast in 2013, then the strange, story-driven survival title We Happy Few. In 2018 XBOX bought the team along with others such as Ninja Theory. Their most recent release, South of Midnight, came out in 2025, earned mostly positive reviews and hit over a million players in its first three weeks. It later appeared on PS5 and Switch 2, and even picked up awards — one being “Best Game with a Special Message” at The Game Awards.
Despite that win, the studio’s public stance — voiced by Guillaume Provost — was never about chasing blockbuster-level sales like Call of Duty. They aimed for offbeat projects and audiences that don’t usually get pushed by big publishers. Still, corporate priorities change. If XBOX is refocusing on larger franchises and tentpole series, a small, niche studio becomes exposed. Negotiations continue; the outcome is uncertain rather than set in stone.