Microsoft Reportedly Closing Compulsion Games, Developer of We Happy Few and South of Midnight
Microsoft is reportedly preparing to shut down Compulsion Games, a Canadian studio known for titles like We Happy Few and South of Midnight. The move, according to reports from Kotaku, could result in more than 90 job losses across the company.
Compulsion Games was acquired by Microsoft in 2018, and its most recent project, South of Midnight, was well-received and even earned a Peabody Award. The closure signals a major shift in Microsoft’s strategy for its Xbox division, as it seeks to streamline operations and improve its financial outlook.
Xbox Studios Undergoing Major Restructuring
In addition to Compulsion Games, reports suggest that Arkane Studios is also set to be closed as part of Microsoft’s broader “reset” of the Xbox business. Mike Straw of Insider Gaming noted that this restructuring could be part of a larger effort to consolidate resources and focus on core franchises.
Arkane Austin was shut down in May 2024, while Arkane Lyon continues to work on the upcoming Marvel's Blade game. This indicates that not all studios under the Xbox umbrella are being affected equally, with some teams being retained for high-profile projects.
Microsoft’s restructuring efforts appear to be accelerating, with reports indicating that staff cuts and studio closures could begin in July 2024, following the end of the company’s fiscal year on June 30. This timeline aligns with recent departures from key leadership roles, including Xbox Games Studios boss Craig Duncan and his chief of staff.
Microsoft’s Vision for Xbox’s Future
Microsoft CEO Satya Nadella has been vocal about the need for strategic changes to ensure the long-term stability of the Xbox brand. In a recent interview, he emphasized the importance of adapting to a rapidly evolving gaming landscape and making tough decisions to remain competitive.
In a blog post outlining Xbox’s roadmap for the next 100 days, Xbox CEO Asha Sharma acknowledged that the upcoming changes would be challenging. She told internal staff that transparency and a willingness to embrace difficult decisions would be crucial to the division’s success.
"For some of you, these realities will be surprising and even frustrating to discover," she wrote. "We won’t succeed by hiding hard truths, nor will we succeed by doing the same thing and expecting different results."
These statements suggest that Microsoft is committed to a radical overhaul of its Xbox division, even if it means closing beloved studios and laying off employees. As the situation unfolds, the gaming community will be watching closely to see how these changes impact the future of Xbox and the games it supports.
