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South of Midnight

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

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Shack NewsNeutral

Evening Reading - August 14, 2026

This week's gaming news roundup includes updates on Total War: Warhammer 3, a review of Madden NFL 27, and the opening of 2K's Small Axe Studios. Compulsion Games has removed Xbox as the publisher for South of Midnight on Steam, while Kingdom Hearts 4 is slated for a late 2027 release with an animated series coming to Disney+. The article also highlights new features for The Elder Scrolls 4: Oblivion Remastered on Nintendo Switch and mentions upcoming content for Modern Warfare 4.

Shack NewsNeutral

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.

EurogamerNeutral

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.

IGNNegative

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.

GamespotVery positive

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.

Checkpoint GamingNegative

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.

Gaming BoltNegative

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.

Shack NewsNegative

Double Fine Productions confirms layoffs after Xbox divestment

Double Fine Productions has confirmed layoffs affecting 23 employees as the studio seeks to ensure its future following its divestment from Xbox. Studio head Tim Schafer announced the staff reductions in a social media message. The studio recently released the party brawler Kiln.

Games IndustryPositive

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.

Checkpoint GamingVery positive

South of Midnight and Consume Me win big at the 2026 Games for Change Awards

The 2026 Games for Change Awards celebrated games with social impact, with South of Midnight and Consume Me taking home multiple awards including Game/Experience of the Year and Indie Breakout, respectively. The ceremony, held during the Games for Change Festival in New York City, highlighted titles from 42 countries, recognizing achievements in narrative, gameplay, community empowerment, environmental impact, health, learning, and emerging media.

Games IndustryVery positive

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.

Gamedeveloper.comNeutral

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.

Games IndustryPositive

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.

EurogamerNegative

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.

Rock Paper ShotgunPositive

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.

Gaming BoltNeutral

South of Midnight Developer is Looking for Studios to Collaborate With

Compulsion Games, now an independent studio after being released from Xbox, is seeking collaboration partners for its next project. The studio, which developed the BAFTA and Peabody Award-winning game South of Midnight, aims to leverage its talent and expertise while securing funding. This announcement follows recent layoffs at Xbox and the independent transitions of other former Xbox studios like Undead Labs, Double Fine Productions, and Ninja Theory.

PC GamerNegative

One week after going independent in the Xbox bloodbath, South of Midnight developer Compulsion Games is looking for work

Compulsion Games, the developer of the BAFTA and Peabody Award-winning title South of Midnight, has announced it is seeking new collaborations after becoming independent following recent layoffs at Xbox. Microsoft, which acquired Compulsion in 2018, allowed the studio to go independent rather than closing it. The studio is leveraging its experience in creating original intellectual property to partner with other companies in the games and entertainment industry.

Retro GamerVery negative

Summary: what's happening at Xbox?

Xbox announced a major restructuring involving 3,200 job cuts, with 1,600 immediate layoffs, primarily affecting ZeniMax studios like Bethesda and id Software. Several studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, are being sold off or spun out as independent entities. This move aims to refocus on high-earning franchises and improve profit margins, impacting the development of upcoming titles like The Elder Scrolls 6 and potentially State of Decay 3.

GamespotNegative

Xbox After The Layoffs: Studios Left And What They’re Making

Xbox has undergone significant restructuring, including layoffs and the divestment of five studios, as it aims to increase profitability and focus on major intellectual properties. This shake-up impacts numerous development teams and projects across Xbox Game Studios, Activision, Blizzard, and Bethesda, with a renewed focus on core franchises and a shift in business strategies like the exclusion of Call of Duty from Xbox Game Pass day-one launches.

EurogamerNegative

Xbox needs to make a choice, says former PlayStation leader Shawn Layden: be a publisher or a platform, but you can't be both

Former PlayStation leader Shawn Layden argues that Xbox must choose between being a major game publisher or a platform holder, stating it cannot effectively be both. He highlights the need for exclusive content to support a platform, contrasting it with the multiplatform approach required for a top publisher, a dilemma exacerbated by recent Xbox layoffs and strategic shifts.