Compulsion Games
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Compulsion Games removes Xbox as publisher of South of Midnight on Steam
Compulsion Games has removed Xbox as the publisher of its upcoming game South of Midnight on Steam, listing itself as the publisher as of August 11, 2026. This change follows Xbox's recent mass layoffs, which had previously put Compulsion Games' future in question. The studio is now independent and retains control of its intellectual property.
Compulsion Games becomes publisher of South of Midnight on Steam, suggesting departure from Xbox amid major restructuring is now complete
Compulsion Games is now listed as the publisher of South of Midnight on Steam, indicating its complete separation from Xbox following recent restructuring. The studio, which also regained rights to its previous titles Contrast and We Happy Few, is now operating as an independent entity. South of Midnight, released in spring 2025, received praise for its visuals and music integration but was criticized for shallow gameplay.
Xbox's Separation from Compulsion Games Seems Complete as Studio Is Listed as the Publisher of South of Midnight on Steam
Xbox's relationship with Compulsion Games appears to have concluded, as the developer is now listed as the publisher of its upcoming game South of Midnight on Steam, rather than Xbox Game Studios. This change follows recent layoffs and a broader restructuring within Xbox's gaming division.
Ignore Your Growing Backlog–It’s Time To Play South Of Midnight On Steam
South of Midnight is now self-published by Compulsion Games on Steam, with Xbox no longer listed as the publisher. This change suggests that future sales will directly benefit Compulsion Games following recent layoffs and restructuring. The article praises the game's atmosphere, sound design, and visuals, calling it an affecting experience despite its familiar combat and platforming mechanics.
Xbox leadership's words are drowned out by their actions
Despite assurances from Xbox leadership, the company's actions, including mass layoffs and studio closures, paint a grim picture for its talent and future projects. While executives like Asha Sharma mention upcoming games like The Elder Scrolls 6, these words are seen as empty promises contrasting with the reality of job cuts at studios like id Software and Bethesda.
200 million new Xbox players weren't enough to offset falling revenue in its latest fiscal year, CEO says: "We…
Despite attracting over 200 million new players to Xbox and its games in fiscal year 2026, Microsoft's gaming division experienced a decline in revenue. CEO Asha Sharma acknowledged the gap between audience growth and business performance, stating that investments in player value are expected to drive growth by the end of fiscal year 2027. The company also underwent significant restructuring, including layoffs and spinning out several first-party studios.
Xbox hardware revenue fell by $1.7 billion during fiscal 2026
Xbox hardware revenue saw a significant decrease of 7%, approximately $1.7 billion, in the fiscal year ending June 30, 2026. This decline is attributed to reduced console sales and a 5% drop in Xbox content and services revenue, despite growth in Xbox Game Pass. Microsoft also faces ongoing challenges with component shortages and has implemented mass layoffs across its gaming division.
Xbox revenue plunges $1.7bn, with hardware dropping 29% YoY
Microsoft's latest financial results reveal a significant 7% year-on-year decline in Xbox revenue for the full year and 10% in the fourth quarter, primarily driven by a 29% drop in hardware sales. Despite growth in Game Pass, content and services revenue also fell by 10%. The company announced widespread layoffs affecting 4,800 roles, including 1,600 at Xbox, as part of a restructuring aimed at long-term growth, with several studios transitioning to new management or becoming independent.
Xbox Revenue Fell by 10 Percent in Last Quarter
Microsoft's Xbox division experienced a 10 percent revenue decrease last quarter, coinciding with significant layoffs across the division. While overall Microsoft revenue increased by 18 percent due to cloud services like Azure, the Xbox content and services segment, along with the Windows OEM and Devices division, saw declines. As part of restructuring, Xbox divested four studios: Compulsion Games, Double Fine Productions, Undead Labs, and Ninja Theory.
“Necessary Decisions” Are Being Made to Reset Xbox for Long-Term Growth, Says Microsoft CEO
Microsoft CEO Satya Nadella stated that "necessary decisions" are being made to reset Xbox for long-term growth, citing a 10 percent revenue decline in the last quarter. The company plans to diversify its business across subscriptions, ads, and digital stores, and expand to new ecosystems. This strategy follows recent layoffs and the divestment of four studios: Compulsion Games, Double Fine Productions, Ninja Theory, and Undead Labs.
Double Fine Productions suffers layoffs weeks after going independent
Double Fine Productions has laid off 23 employees, nearly 25% of its workforce, just weeks after becoming an independent studio following its separation from Xbox. The studio stated the layoffs were necessary for its survival and to adjust to its new size as an independent entity. This follows Xbox's broader restructuring efforts which have also impacted other studios.
Double Fine Announces Layoffs For 23 Employees Following Xbox Split
Double Fine Productions, developer of Psychonauts, has laid off 23 employees following its separation from Xbox. Studio founder Tim Schafer stated the move was necessary for the studio's sustainability as an independent company. Xbox confirmed the return of intellectual property and runway for future games to Double Fine and other divested studios like Compulsion Games, Ninja Theory, and Undead Labs.
Games for Change Festival to expand and move to new cities
The Games for Change Festival will expand its reach by hosting events in new cities during odd-numbered years, starting with Arizona in 2027 in partnership with Arizona State University. The festival will return to New York in even-numbered years and will resume a three-day schedule due to increased attendance. This expansion aims to include more creators, developers, educators, and researchers in the G4C community.
South of Midnight wins Game and Experience of the Year at Games for Change Awards 2026
Compulsion Games' South of Midnight was named Game and Experience of the Year at the 2026 Games for Change Awards. The ceremony also recognized Hexecutable's Consume Me for Best Narrative and Best Gameplay, and Paintbucket Games' The Darkest Files for Best in Learning. Jenn Panattoni received the Vanguard Award for her significant contributions to the industry, including establishing the Xbox Social Impact team.
Another former Xbox studio is "independently owned, again" after Microsoft shut it down in 2024
Alpha Dog Games, a studio previously shut down by Microsoft in 2024, has reemerged as an independently owned entity. Studio founder Shawn Woods updated his LinkedIn profile to reflect the change, indicating the studio regained independence in May 2025. This follows a trend of studios becoming independent after Microsoft's recent closures and layoffs.
Is Game Pass Still the Right Strategy for Xbox?
This article analyzes the current state and future strategy of Xbox Game Pass, questioning its sustainability and impact on game value. Despite initial excitement and acquisitions to bolster its library, internal sentiment appears negative, with reports of studios detesting the service and subscriber growth falling short of projections. While Game Pass remains a key, albeit paradoxical, component of Xbox's offerings, its future is uncertain amidst internal challenges and a need for renewed growth.
Compulsion Games posts call for business partners after Xbox spinoff
Compulsion Games, the studio behind South of Midnight, is seeking business partners for collaboration after its recent spinoff from Xbox. The studio, which has received multiple awards for its original IP, aims to leverage its talent and creativity for future projects. This move follows a significant restructure within Xbox, which included layoffs and the divestment of several studios.
Compulsion Games seeks new partnerships following spin-out from from Xbox
Compulsion Games has announced its return to independent development after being spun out from Xbox. The studio, known for South of Midnight, is now seeking new partnerships to leverage its team's talent and creativity. Compulsion Games retains the rights to its previous titles, including Contrast, We Happy Few, and South of Midnight.
Days after leaving Xbox, South of Midnight developer Compulsion Games broadcasts that it's looking for work
Following its separation from Microsoft's Xbox division due to layoffs, Compulsion Games is actively seeking new collaboration opportunities with other studios. The developer of South of Midnight and We Happy Few aims to leverage its award-winning talent to support external projects while retaining ownership of its existing IPs.
Following Xbox split, South of Midnight devs Compulsion are looking for work as a co-development or support studio
Following layoffs from Xbox, Compulsion Games, the studio behind South of Midnight and We Happy Few, is now operating as an independent developer. The company is actively seeking co-development or support roles with other studios to secure funding and leverage its team's talent while working on its next original game.
