Xbox has reportedly shut down Compulsion Games, the Montreal studio behind South of Midnight, which launched just weeks ago. The closure adds to a growing list of Microsoft-owned studios that have been shuttered in recent years.
No further details are confirmed — it's unclear whether staff are being absorbed into another Xbox team or let go entirely. Compulsion Games was acquired by Microsoft in 2018 and had previously shipped We Happy Few.
South of Midnight, a Southern Gothic action-adventure, received a broadly positive reception at launch. The timing makes the closure particularly jarring, and it raises fresh questions about Xbox's first-party strategy after the earlier shutdowns of Arkane Austin, Tango Gameworks, and Alpha Dog Games.
Sources (3)
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