Original article: According to a new report, Microsoft and Xbox are planning to close Compulsion Games, the development studio behind Xbox's 2025 first-party action-adventure title South of Midnight. It also created the 2018 stealth-driven adventure game We Happy Few.
The news comes from Kotaku, which reported earlier today that it became aware of Microsoft's intent to shutter the developer. Notably, it also comes mere days after it was reported that significant Xbox layoffs are coming in July, and after its CEO Asha Sharma admitted the brand is "over-extended" and will go through a "reset" of sorts in the next 100 days.