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South of Midnight

News, coverage and analysis tracking South of Midnight across the outlets.

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Rock Paper Shotgun

South of Midnight studio Compulsion Games are allowing staff to openly seek new jobs ahead of possible Xbox layoffs, according to report

Compulsion Games, the studio behind South of Midnight, has reportedly given some staff permission to seek new employment ahead of potential layoffs at Xbox Game Studios in July. While no layoffs have occurred yet, developers have begun posting on LinkedIn about their availability for new roles. This situation is occurring amidst reports that Compulsion Games' future is uncertain, with possibilities including closure or spinning off into independence.

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Blues News

Comings and Goings

Compulsion Games, the studio behind South of Midnight and We Happy Few, has begun an unspecified number of layoffs. The reasons for the staff reductions were not immediately clear.

Eurogamer

Amid reports Xbox is preparing for significant layoffs, a wave of staff at South of Midnight developer Compulsion Games announce their departure

Multiple employees have announced their departures from Compulsion Games, the developer of South of Midnight, amid reports of significant layoffs and potential studio closures within the Xbox division. These departures follow news that Microsoft is planning major restructuring across its gaming division, with Compulsion Games, Double Fine, and Ninja Theory reportedly among the studios at risk.

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Gamespot

Xbox Layoffs Appear To Be Starting With South Of Midnight Dev Compulsion

Xbox Game Studios has reportedly begun layoffs, with developers at Compulsion Games, the studio behind South of Midnight, being affected. This comes as part of a larger restructuring under new CEO Asha Sharma, which may see several Xbox Game Studios closed or become independent. Other studios like Double Fine and Ninja Theory are also reportedly in talks with Xbox to avoid closure.

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Retro Gamer

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

Developers from Compulsion Games, the studio behind South of Midnight, are leaving en masse as parent company Xbox Game Studios undergoes a significant business 'reset'. Multiple reports indicate potential layoffs or closures across several Xbox Game Studios, with Compulsion Games reportedly in talks to spin off independently. Several employees have publicly announced they are seeking new opportunities after years with the studio.

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Gaming Bolt

South of Midnight Studio Has Been Hit by Mass Layoffs – Rumor

A rumor from leaker Rebs Gaming suggests that Compulsion Games, the developer of South of Midnight, has experienced mass layoffs. Several employees have confirmed their departure on LinkedIn, including narrative designer Bijan Stephen and environment artist Paulette Richardson. Industry figures like Jason Schreier and Shawn Layden have commented on the situation, with Schreier suggesting Microsoft is punishing studios for past decisions and Layden stating Xbox shows a misunderstanding of the industry.

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Gaming Bolt

Ori Studio Head Says Game Pass Would Have Worked if Xbox Could “Understand What’s a Good Game”

Moon Studios CEO Thomas Mahler believes Xbox Game Pass could have succeeded if Microsoft had focused on quality over quantity, comparing it unfavorably to premium streaming services. He criticized Xbox's first-party output, citing Starfield as an example of a game that failed to meet the potential of its predecessor, and suggested that Xbox leadership needs a better understanding of what constitutes a "good game" to truly connect with gamers.

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Nintendo Everything

Nintendo 2 Switch eShop charts – June 21, 2026 – Star Fox and The Adventures of Elliot compete for the top spot

The Nintendo Switch 2 eShop charts for the week of June 21, 2026, show Star Fox leading in pre-loads, followed by The Adventures of Elliot: The Millennium Tales. The charts detail the top-selling games, including various editions and expansions for popular titles like Zelda and Pokemon.

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Gaming Bolt

Anyone Not Working on The Elder Scrolls or Fallout at Bethesda is Being Laid Off – Rumor

Reports suggest that ZeniMax Media, including studios like Bethesda Game Studios and id Software, is undergoing significant layoffs, with employees not working on The Elder Scrolls or Fallout projects being particularly affected. This comes amid broader Xbox restructuring and potential studio closures for titles like Hellblade and South of Midnight, as executives cite revenue losses and rising hardware costs.

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Gaming Bolt

Xbox is Punishing its Studios For Following Previous Orders – Report

A report indicates that Xbox is punishing its studios for following previous directives, leading to significant layoffs and studio closures. This follows major investments like the Activision Blizzard acquisition and the push for Game Pass, with some studios being criticized for prioritizing the subscription service over individual game sales. The situation has created an environment of fear and uncertainty, impacting game development.

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PC Gamer

It just keeps getting worse—Microsoft reportedly already had Ninja Theory in its crosshairs while pushing the…

Microsoft is reportedly planning to close or divest Ninja Theory, despite recently revealing a new game from the studio. An anonymous source suggests this decision was made before the game's announcement, with the reveal intended to attract potential buyers. This move adds to concerns about Microsoft's commitment to its studios and its overall strategy in the gaming industry.

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Push Square

New Senua Game Reveal Used as a Way to Sell Ninja Theory to Suitors

Microsoft reportedly used the reveal of a new Senua game at the Xbox Games Showcase 2026 as a strategy to attract potential buyers for the Ninja Theory studio. This move was allegedly made while Microsoft was already planning to sell or shut down the developer, aiming to increase investor interest by showcasing a confirmed project.

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Gaming Bolt

Xbox Shows a “Basic Misunderstanding” of the Gaming Industry, Says Former PlayStation Exec

Former PlayStation Studios boss Shawn Layden believes Xbox's recent actions, including impending layoffs and studio closures, demonstrate a fundamental misunderstanding of the gaming industry. This perspective arises amidst reports of significant financial losses and strategic shifts within Microsoft's gaming division, impacting studios like Ninja Theory, Double Fine, and Compulsion Games.

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Tech Radar

Amid reports of closures to Ninja Theory and Compulsion Games, Xbox Game Studios CEO Craig Duncan is stepping down from…

Xbox Game Studios CEO Craig Duncan and chief of staff Louise O'Connor are stepping down amid reports of significant layoffs and the closure of studios like Ninja Theory, Compulsion Games, and Double Fine. Duncan, who previously led Rare for 14 years, had been CEO for less than two years. These changes follow a strategic "Xbox reset" outlined by CEO Asha Sharma.

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FZ.se

Xbox Game Studios-chef lämnar – efter 20 månader

Craig Duncan, head of Xbox Game Studios, has resigned after only 20 months, with chief of staff Louise O'Connor also departing. This follows recent news of potential studio closures and layoffs within Microsoft's gaming division. The departures occur amidst a strategic shift for Xbox, including price adjustments to Game Pass and a re-evaluation of multi-platform releases.

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IGN

Xbox Game Pass Soldiers on With June 2026 Wave 2 Lineup Announcement

Microsoft has announced the Xbox Game Pass lineup for June 2026 Wave 2, amidst reports of potential studio closures and mass layoffs affecting developers like Ninja Theory, Double Fine, and Compulsion Games. The company has not yet commented on these reports.

Rock Paper Shotgun

Another Xbocalypse begins: Microsoft are reportedly closing or spinning off Double Fine, Ninja Theory and Compulsion

Microsoft's Xbox division is reportedly considering closing or spinning off studios Double Fine, Ninja Theory, and Compulsion Games as part of a broader business restructuring. This follows recent layoffs, game cancellations, and studio closures across Xbox. The affected studios are known for critically acclaimed but not commercially massive titles like Psychonauts, Senua's Saga: Hellblade II, and South of Midnight.

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Metro UK

Xbox to shut down at least three game developers and no one is safe

Xbox is reportedly planning to shut down at least three game development studios, including Ninja Theory, Compulsion Games, and Double Fine, as part of a broader 'reset' and layoffs within Microsoft's gaming division. Ninja Theory is reportedly seeking a new buyer, while Compulsion Games and Double Fine are in negotiations to become independent. This follows previous studio closures and layoffs at Xbox, such as Tango Gameworks and The Initiative.

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Eurogamer

Microsoft reportedly negotiating closures of multiple Xbox studios, including Psychonauts' Double Fine, South of Midnight's Compulsion and Hellblade's Ninja Theory

Microsoft is reportedly negotiating the potential closure of several Xbox game studios, including Compulsion Games, Double Fine, and Ninja Theory. These studios are in talks to buy back their independence to avoid being shut down. This news follows recent reports of budget cuts and layoffs under new Xbox CEO Asha Sharma.

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Checkpoint Gaming

Several studios at risk of closure amid Xbox restructuring

Several internal Xbox studios, including Double Fine, Compulsion Games, and Ninja Theory, are reportedly at risk of closure or being shut down as part of a global restructuring. These studios are in discussions with Xbox to potentially go independent or secure their future. This move follows previous closures of Tango Gameworks and Arkane Austin and comes as Xbox shifts focus to major IPs like The Elder Scrolls and Fallout, amidst broader industry challenges including layoffs at Ubisoft.

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