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South of Midnight

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

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Nintendo Life

Multiple Xbox Studios Reportedly In Active Negotiations With Microsoft To Avoid Closure

Multiple Xbox game studios, including Compulsion Games, Ninja Theory, and Double Fine, are reportedly in active negotiations with Microsoft to avoid closure. Some studios may be given the opportunity to go independent or find a new buyer. Employees at Ninja Theory have been informed of potential closure, and Arkane Studios is also reportedly concerned about its future.

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Gaming Bolt

Compulsion Games May Be The First Studio To Fall In Xbox’s Restructuring Plans – Rumor

Rumors suggest that Compulsion Games, the developer behind South of Midnight, may be one of two studios Xbox plans to close as part of a restructuring. This follows reports of impending layoffs, though the studio's leadership is reportedly in negotiations with its parent company. Other studios like Obsidian and Rare are believed to be safe.

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Gaming Bolt

Hellblade Studio Ninja Theory to be Closed by Xbox, Negotiating to Go Independent – Rumor

Reports indicate that Xbox is planning to close Ninja Theory, the developer of the Hellblade franchise, as part of efforts to improve fiscal year accountability margins. Ninja Theory is reportedly negotiating to become an independent studio, similar to efforts by Double Fine and Compulsion Games. These potential closures and layoffs are expected to occur after Microsoft's fiscal year ends on June 30th, driven by declining revenues and rising hardware component costs.

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Gamespot

Double Fine, Ninja Theory, And More Reportedly Trying To Spin Off From Xbox Game Studios

Following reports of potential layoffs and studio closures at Microsoft, including Compulsion Games, several smaller Xbox Game Studios developers like Double Fine and Ninja Theory are reportedly negotiating to spin off from the publisher. This move aims to avoid closure, though many employees may still lose their jobs. The head of Xbox Game Studios, Craig Duncan, has also departed the company.

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Retro Gamer

Double Fine, Ninja Theory reportedly among multiple Xbox studios rushing to negotiate an exit as Microsoft plans more…

Microsoft's Xbox division is reportedly planning further studio closures and restructuring, with Double Fine, Ninja Theory, and Compulsion Games in negotiations to spin off independently. New Xbox CEO Asha Sharma and CCO Matt Booty have indicated the current business model is unsustainable, leading to expected layoffs and studio cuts, following the recent closure of Tango Gameworks.

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Games Industry

Xbox is reportedly considering closing South of Midnight studio, Compulsion Games, with Double Fine and Ninja Theory also allegedly at risk

Xbox is reportedly considering closing several of its game development studios, including Compulsion Games, the developer of South of Midnight, and potentially Double Fine and Ninja Theory. Leadership at Compulsion Games is reportedly in negotiations regarding the studio's future, amidst broader reports of potential layoffs and restructuring within Microsoft's gaming division.

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Shack News

Double Fine, Ninja Theory & Compulsion are reportedly negotiating with Microsoft to avoid closures

Multiple Xbox Game Studios developers, including Compulsion Games, Double Fine Productions, and Ninja Theory, are reportedly negotiating with Microsoft to avoid closure and potentially gain independence. While independence could prevent full shutdowns, layoffs are still expected. This news follows an announcement from Xbox CEO about a business 'reset' and restructuring.

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Gamedeveloper.com

Report: Multiple Xbox game studio heads negotiating with Xbox to avoid closure

Multiple Xbox game studio heads are reportedly negotiating with Microsoft to spin off their studios into independent companies to avoid closure. This comes as Microsoft's gaming division undergoes a 'business reset' and considers major layoffs. Studios like Compulsion Games, developer of South of Midnight, are specifically mentioned as potentially shutting down, though leadership is in talks to preserve their future.

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The Sixth Axis

Rumours suggest multiple Xbox studios are to close

Rumors suggest Microsoft is planning to close multiple Xbox studios, including Compulsion Games and Arkane Studios, with potential spin-offs for Double Fine. The head of Xbox Game Studios, Craig Duncan, has also stepped down amid these reports. These potential closures follow underperforming titles like South of Midnight and Redfall, and broader industry discussions about the sustainability of day-one Game Pass releases.

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PC Gamer

Xbox is reportedly closing South of Midnight studio Compulsion Games after bragging about its award-winning developers…

Xbox is reportedly planning to close Compulsion Games, the studio behind South of Midnight and We Happy Few, just days after announcing impending layoffs. While no official statement has been made, multiple employees have indicated they are seeking new work. This comes despite recent praise from Xbox leadership, including CEO Asha Sharma and Chief Creative Officer Matt Booty, for the studio's award-winning work.

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Retro Gamer

Latest Microsoft victim reportedly being closed after releasing one game since Xbox acquisition

Microsoft is reportedly closing Compulsion Games, the studio behind We Happy Few and South of Midnight, eight years after acquiring it. This move is part of a larger downsizing within Xbox, which has seen thousands of layoffs and is expected to continue. South of Midnight, Compulsion's only release since the 2018 acquisition, received critical acclaim and awards.

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Shack News

Xbox is reportedly planning to shut down Compulsion Games

Xbox is reportedly planning to shut down Compulsion Games, the studio behind South of Midnight and We Happy Few. The Peabody-winning studio, acquired by Xbox in 2018, has developed three games since its founding in 2009. Negotiations between Compulsion leadership and Microsoft are reportedly ongoing.

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Destructoid

XBOX reportedly shutting down South of Midnight studio as part of new CEO’s ‘reset’

Xbox is reportedly shutting down the studio behind the upcoming game South of Midnight as part of a new CEO's strategic reset. This move signals a significant shift in the company's internal development strategy.

Gamespot

Xbox Closing We Happy Few, South Of Midnight Developer Compulsion Games – Report

Microsoft is reportedly planning to close Canadian developer Compulsion Games, known for We Happy Few and South of Midnight, as part of a broader restructuring of its Xbox division. This move could impact over 90 employees, and follows recent reports of potential closures for Arkane Studios. Xbox CEO Asha Sharma alluded to difficult changes ahead to improve economic stability.

Push Square

Three Xbox Studios at Risk of Closure, in Talks to Become Independent

Reports indicate that three Xbox first-party developers, Compulsion Games, Double Fine, and Ninja Theory, are at risk of closure and are in negotiations with Microsoft to become independent studios. This news follows recent speculation about potential studio closures within Xbox Game Studios, with CEO Satya Nadella emphasizing the need for Xbox to become a sustainable business.

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Push Square

Several Xbox Studios at Risk of Closure, in Talks to Become Independent

Several Xbox first-party studios, including Compulsion Games, Double Fine, and Ninja Theory, are reportedly at risk of closure and are in negotiations with Microsoft to spin off as independent entities. This news follows comments from CEO Satya Nadella about Xbox needing to become a sustainable business. Compulsion Games' title 'South of Midnight' was recently released on PlayStation 5.

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Push Square

South of Midnight Maker Said to Be Shuttered by Xbox

Reports indicate that Xbox studio Compulsion Games, the developer behind South of Midnight, is set to be closed. This follows speculation about widespread layoffs within Microsoft's gaming division. While not officially confirmed, multiple employees have indicated they are seeking new work, and the studio's writer has also suggested its closure.

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Nintendo Everything

Xbox reportedly shutting down South of Midnight dev Compulsion Games

Xbox is reportedly shutting down Compulsion Games, the studio behind South of Midnight and We Happy Few. This closure, which could affect over 90 employees, comes amid broader financial challenges and restructuring within Xbox's gaming division under CEO Asha Sharma. The report suggests an official announcement is imminent.

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IGN

Microsoft Has Reportedly Shut Down South of Midnight Developer Compulsion Games

Microsoft is reportedly planning to shut down Compulsion Games, the studio behind South of Midnight and We Happy Few. The closure would mark the end of operations for the Canadian developer.

Nintendo Everything

Nintendo Switch 2 eShop charts – June 14, 2026 – Xenoblade makes a run at Pokemon Pokopia

The latest Nintendo Switch 2 eShop charts for the week of June 14, 2026, show Xenoblade Chronicles making a strong showing, with its upgrade pack at second place and the full game at sixth. Pokemon Pokopia remains at the top spot. New entries in the top ten include The Adventures of Elliot and Rise of the Tomb Raider.

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