Microsoft may be shutting down Compulsion Games, the studio behind the upcoming South of Midnight, according to a report from Kotaku. The closure could affect over 90 staff members. Studio leadership is currently in negotiations with Microsoft, but no official decision has been announced.
Studio leadership in talks with Microsoft
Compulsion Games is a first-party Xbox Game Studios developer. The studio is known for South of Midnight, a title still in development. The rumored closure comes amid a larger potential layoff wave across Xbox Game Studios.
Kotaku reports that the studio's leadership is in talks with Microsoft about the decision. No official details have been revealed yet. The report suggests Arkane Studios may also be heavily affected by the same wave.
If confirmed, the closure would mark a significant loss for Xbox's first-party lineup. South of Midnight's fate remains uncertain. The situation is still developing, with no official statement from Microsoft.
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