In what might be the most tone-deaf speedrun in corporate history, Xbox is reportedly shutting down Compulsion Games - the studio behind the recently released South of Midnight - according to PC Gamer. Yes, the same studio Xbox was publicly praising for its award-winning talent earlier this year. You can't make this stuff up.
From hero to zero faster than a speedrunner on any% mode
The timing here is genuinely painful. Xbox had been cheerleading for Compulsion Games and their developers with glowing PR language just months before this reported closure. Now those same devs are apparently being handed a game over screen with no continue option in sight.
The shutdown doesn't exist in a vacuum either. This comes just days after a separate report warned that major layoffs were incoming across Xbox's wider operation. So this isn't a random encounter - it looks like part of a much bigger boss fight that Xbox's workforce is currently losing badly.
Another studio bites the dust in the Xbox hunger games
Compulsion Games has been part of the Xbox family since Microsoft acquired them back in 2018. The studio previously shipped We Happy Few before spending years crafting South of Midnight, a narrative action-adventure set in a fantastical American Deep South. The game had only just launched, and now its creators are reportedly on the chopping block.
This follows a grim pattern for Xbox Game Studios. Redfall developer Arkane Austin and The Initiative were among the studios previously shuttered, and it's starting to feel less like a gaming division and more like a battle royale where developers keep getting eliminated until there's one studio left standing.
What does this mean for South of Midnight's future?
That's the million-dollar question right now. The game is literally fresh out of the box, and if the studio behind it is gone, post-launch support and any potential DLC plans could evaporate faster than Xbox's goodwill. Players who just booted up the game for the first time might be inheriting an abandoned world.
As of writing, Microsoft has not officially confirmed the closure. But given the recent track record, nobody's exactly holding their breath for good news. Keep an eye on further developments - this particular quest log is far from complete.
