South of Midnight
News, coverage and analysis tracking South of Midnight across the outlets.
Xbox setting Compulsion and Double Fine free is the only good thing to come out of Microsoft's layoffsMicrosoft's recent layoffs, affecting thousands of employees, have led to Xbox allowing Compulsion Games and Double Fine Productions to become independent. While the mass job losses are devastating, this move is seen as a positive step for fostering innovation in the indie game space, freeing these studios from the constraints of triple-A development.
Zenimax omorganiseras för att fokusera på sina stora varumärkenZeniMax Media is undergoing a significant restructuring to concentrate on its major franchises like The Elder Scrolls, Fallout, Wolfenstein, Doom, and Quake. This reorganization follows recent layoffs at Xbox and involves some studios becoming independent or being sold, though ZeniMax itself retains its studios.
The Gaming Industry Is Eating Itself AliveXbox is undergoing a massive restructuring, including 3,200 layoffs, impacting numerous studios and divisions like Activision, Bethesda, and Blizzard. While some studios regain independence and first-party projects remain safe for now, the article criticizes Xbox's overall strategy, citing Game Pass's performance and declining hardware revenue. The piece also touches on PlayStation's similar issues with digital ownership and preservation, painting a bleak picture for the future of gaming costs and ownership.
Compulsion Games and Double Fine confirm "Independence Day" from XboxCompulsion Games and Double Fine have confirmed their return to independent management following significant layoffs and studio divestitures at Xbox. Compulsion Games will retain the rights to its titles, including We Happy Few and South of Midnight, while Double Fine also regains ownership of its games. This news comes as part of broader restructuring within Xbox's gaming division, affecting multiple studios.
Report: The “majority” of ID software and up to half of Zenimax online have lost their jobsReports indicate significant layoffs across several Xbox-owned studios, including a majority of ID Software and up to half of ZeniMax Online Studios. These cuts affect teams working on titles like The Elder Scrolls Online, with roadmaps expected to shift. Other studios like Compulsion Games and Double Fine are reportedly going independent.
Independent again: Double Fine and Compulsion react to leaving Xbox and taking all their games with themDouble Fine Productions and Compulsion Games are returning to independent development after being let go by Microsoft as part of Xbox restructuring. Both studios will retain ownership of their games, including Psychonauts 2, Keeper, and South of Midnight. This move follows a period of significant layoffs and strategic shifts within Xbox.
Xbox acquisitions have been a disaster: "In a typical year, we lost 64 cents for every dollar we invested"Xbox CEO Asha Sharma revealed that Microsoft's aggressive acquisition strategy has resulted in significant financial losses, with the company losing 64 cents for every dollar invested in typical years since 2018. In response to this unsustainable model, Xbox is undergoing a reset, leading to layoffs and the divestment of several studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, while others like Arkane Studios are reviewing strategic options.
Microsoft needs to "reset Xbox," says Asha Sharma, as the company lays off 3,200 employeesMicrosoft's Xbox division is undergoing significant restructuring, with approximately 3,200 employees being laid off throughout the 2027 fiscal year, including 1,600 immediately. CEO Asha Sharma stated the business is not healthy and operating at lower margins than comparable companies. Several studios, including Compulsion Games and Double Fine Productions, will transition to independent management, while Ninja Theory and Undead Labs are set to be acquired by new owners.- Double Fine and Compulsion Confirm Status Following Xbox Cuts, Get to Keep Franchises Such as Psychonauts and South of MidnightFollowing significant layoffs by Xbox, Double Fine and Compulsion Games have confirmed they will continue as independent studios. Both companies will retain ownership of their respective franchises, including Psychonauts and South of Midnight.
Compulsion Games is returning to independent management amid sweeping Xbox reorganization: 'Our immediate priority…Compulsion Games is returning to independent management following a significant reorganization at Xbox and Microsoft, which includes widespread layoffs. The studio will retain ownership of its intellectual property, including South of Midnight, We Happy Few, and Contrast. This move comes after reports suggested the studio was at risk of closure.
Xbox cuts 3,200 staff as four studios to exit Microsoft – Arkane under reviewMicrosoft has announced significant layoffs affecting approximately 3,200 employees within its Xbox division, with 1,600 staff being let go immediately. Four studios, including Ninja Theory and Undead Labs, are becoming independent or being sold off, while Arkane Lyon's future is under review. This restructuring follows a period of rapid developer acquisitions and aims to refocus Xbox's business strategy.
Xbox are parting ways with Double Fine, Arkane, Undead Labs, Compulsion, and Ninja Theory in the course of thousands of layoffsMicrosoft has announced significant layoffs affecting 3200 employees and is parting ways with five Xbox-owned studios: Double Fine, Arkane, Undead Labs, Compulsion Games, and Ninja Theory. Some studios will become independent or find new ownership, while Arkane's future is uncertain. CEO Asha Sharma cited rising costs, underperforming acquisitions, and a challenging industry landscape as reasons for the "reset."- Microsoft confirms 3200 layoffs and four studio departuresMicrosoft has confirmed significant layoffs affecting approximately 3,200 employees across its Xbox business, including 1,600 on the day of the announcement. Four studios, Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, will either become independent or find new ownership, while Arkane Studios faces strategic review. Xbox CEO Asha Sharma cited slower-than-expected growth in Game Pass, multi-platform strategies, and content portfolio as reasons for the restructuring, which will also involve reducing management layers.
Xbox confirms mass layoffs, Double Fine Productions and Compulsion Games to go independentXbox CEO Asha Sharma announced significant changes, including layoffs affecting 3,200 employees and four studios becoming independent or sold. Compulsion Games and Double Fine Productions are now independent, retaining their IP rights, while Ninja Theory and Undead Labs have been sold to new owners. Sharma cited an unhealthy business model with low profit margins as the reason for these drastic measures.
Xbox cutting 3,200 jobs and parting ways with Double Fine, Compulsion, Ninja Theory, and Undead LabsMicrosoft has initiated a significant restructure of its Xbox division, eliminating 3,200 jobs and parting ways with four studios: Double Fine, Compulsion Games, Ninja Theory, and Undead Labs. New Xbox CEO Asha Sharma stated the cuts are necessary due to underperforming bets on Xbox Game Pass and multiplatform releases, as well as a severe hardware crisis impacting component prices. The company aims to streamline operations, reduce management layers, and foster a more efficient development environment.
Xbox parts ways with 4 studios, with South of Midnight and Psychonauts devs going independent as Arkane begins "required consultation" to "review potential strategic options"Xbox is undergoing a significant restructure, leading to four of its studios becoming independent or finding new ownership. Compulsion Games and Double Fine Productions will transition to independent studios, while Ninja Theory and Undead Labs will be acquired by new owners. Additionally, Arkane Studios is entering a consultation period to review its strategic options.
Microsoft announces 3200 layoffs and four studio departures in "most significant" Xbox restructuring in historyMicrosoft has announced a significant restructuring of its Xbox division, including approximately 3,200 layoffs and the departure of four studios. Compulsion Games and Double Fine Productions will become independent, while Ninja Theory and Undead Labs are seeking new ownership. Arkane Studios is also under review. Xbox CEO Asha Sharma cited business performance and industry challenges as reasons for the changes.
Xbox Layoffs, Studio Closures, And Spin-Offs: Everything Announced TodayMicrosoft has announced significant layoffs and studio restructuring within its Xbox division, impacting 3,200 employees over the current financial year, with 1,600 layoffs starting immediately. Several studios, including Compulsion Games and Double Fine Productions, are transitioning back to independent management, while others like Ninja Theory and Undead Labs are seeking new ownership. The company cited financial underperformance and a need to reset its strategy, focusing investment on higher-priority games and core IPs.
Compulsion Games Confirms Retaining Rights to South of Midnight, We Happy Few After Xbox SplitCompulsion Games has confirmed it is returning to independence after its split from Xbox, retaining the rights to its titles South of Midnight, We Happy Few, and Contrast. This news comes amidst widespread layoffs at Xbox, with Compulsion's future now secure despite rumors of closure. The studio aims to continue creating unique games that tell important stories.- Rare added to the list of Xbox studios under threatRumors suggest that Microsoft is planning significant layoffs across several Xbox studios, including Rare, Bethesda, and Arkane, with some studios potentially facing closure or sale. This follows recent layoffs at Bungie and Microsoft pulling out of a partnership with IO Interactive. The reported motivation behind these potential cuts is a focus on profitability by new Microsoft management.