South of Midnight
News, coverage and analysis tracking South of Midnight across the outlets.
This Week In Games Was Bad, But Next Week May Be WorseThe gaming industry experienced a particularly bleak week with multiple significant layoffs, studio closures, and price increases. Microsoft's Xbox division saw widespread job cuts, while Sony announced plans to end physical disc production for PlayStation games by 2028. These events, coupled with delays and the ongoing impact of AI discussions, paint a grim picture for the industry's immediate future.
IO Interactive Layoffs: Xbox Pulls Project Fantasy Funding — Too Much Gaming | Video Games Reviews, News, & GuidesIO Interactive is continuing work on Project Fantasy despite Xbox pulling its funding, and will now seek alternative funding or self-publish. This is part of a larger "reset" at Xbox under new CEO Asha Sharma, with reports indicating several studios like Ninja Theory, Compulsion Games, Undead Labs, Arkane, and Double Fine are in talks to avoid closure. Xbox is reassessing its investment priorities to better fund its existing franchises and ensure a reliable pipeline of exclusive content.
Kojima Productions’ OD Remains Safe Ahead of Xbox Reset – RumorDespite recent rumors of potential studio closures and layoffs at Xbox, Kojima Productions' upcoming horror title OD is reportedly safe. This comes as other studios like Ninja Theory, Undead Labs, Compulsion Games, Double Fine Productions, and Arkane Lyon face uncertain futures. OD remains Kojima Productions' primary focus for 2026.
Rykte: State of Decay 3-utvecklaren Undead Labs riskerar också stängningRecent reports suggest that Microsoft may be considering closing or selling Undead Labs, the developer of the highly anticipated State of Decay 3. This follows unconfirmed information that Ninja Theory, Double Fine, and Compulsion Games are also facing potential closures or sales. Microsoft is reportedly planning to make these decisions in early July.
Xbox could cancel Marvel's Blade and close Arkane in July bloodbath, report says, or the studio may be sold offXbox is reportedly considering closing or selling Arkane Studios and canceling its game Marvel's Blade due to budget and release date issues. This is part of a larger wave of layoffs expected in July as Microsoft aims to cut costs. Other studios like Arkane Austin and Compulsion Games have also faced closures or struggles.
State of Decay studio Undead Labs potentially up for closure, sources claim, with Bethesda and Blizzard also facing layoffsMicrosoft is reportedly planning significant layoffs across its gaming division, potentially including the closure of Undead Labs, the studio behind State of Decay. Bethesda and Blizzard Entertainment are also expected to face substantial job cuts as part of a company-wide "reset." Union workers are negotiating with management to protect jobs or secure severance packages amid these widespread reductions.
Xbox cuts rumoured to be the ‘largest single layoff event’ in gaming historyReports suggest that Xbox is planning a significant round of layoffs, potentially the largest in gaming history, impacting multiple studios including Undead Labs, Ninja Theory, Compulsion Games, and Double Fine. Game designer George Broussard claims to have inside information indicating widespread studio closures and job cuts across the Xbox division following the end of its fiscal year.
South of Midnight studio Compulsion Games are allowing staff to openly seek new jobs ahead of possible Xbox layoffs, according to reportCompulsion 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.- Comings and GoingsCompulsion 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.
Amid reports Xbox is preparing for significant layoffs, a wave of staff at South of Midnight developer Compulsion Games announce their departureMultiple 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.
Xbox Layoffs Appear To Be Starting With South Of Midnight Dev CompulsionXbox 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.
As Xbox studios brace for a "reset," South of Midnight developers from Compulsion Games begin looking for workDevelopers 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.
South of Midnight Studio Has Been Hit by Mass Layoffs – RumorA 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.
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.
Nintendo 2 Switch eShop charts – June 21, 2026 – Star Fox and The Adventures of Elliot compete for the top spotThe 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.
Xbox is Punishing its Studios For Following Previous Orders – ReportA 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.
Anyone Not Working on The Elder Scrolls or Fallout at Bethesda is Being Laid Off – RumorReports 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.
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.
New Senua Game Reveal Used as a Way to Sell Ninja Theory to SuitorsMicrosoft 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.
Xbox Shows a “Basic Misunderstanding” of the Gaming Industry, Says Former PlayStation ExecFormer 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.