The video game industry is no stranger to heartbreaking news, and the latest round of cuts at Microsoft-owned studios is yet another continuation of that. They say people begin to become numb to certain sensations, and it seems we’ve reached a point where my own emotions are beginning to gloss over from this repeated news cycle.
On June 25, 2026, gaming reporter Rebs Gaming shared the latest update on X, stating that layoffs had started at Compulsion Games, the team responsible for developing South of Midnight. We knew this was coming, and in effect, many hoped for potential buyouts of these studios so they could continue their work and livelihood under the direction of another publisher.
