Xbox Closing We Happy Few, South Of Midnight Developer Compulsion Games – Report

Microsoft is reportedly going to close the Canadian developer Compulsion Games, which is known for Contrast, We Happy Few, and South of Midnight. According to Kotaku, the cuts could affect more than 90 people. Another report, from Mike Straw of Insider Gaming, said Arkane is also set to be closed as part of Microsoft's "reset" of the Xbox business. GameSpot has contacted Microsoft seeking comment on the reports. Microsoft acquired Compulsion in 2018 and took ownership of Arkane following its buyout of Bethesda owner ZeniMax. Arkane Austin was closed in May 2024. Arkane Lyon, meanwhile, is developing the upcoming Marvel's Blade game. As for Compulsion, the studio's latest release was the highly celebrated, Peabody Award-winning game South of Midnight. A recent report said Microsoft will cut staff and potentially close studios in July, following the end of the company's fiscal year on June 30. Xbox Games Studios boss Craig Duncan, and his chief of staff, recently left the company. Microsoft CEO Satya Nadella, meanwhile, recently made headlines for talking about making changes to Xbox to improve its economic stability. In a blog post announcing what's to come for Xbox in the next 100 days, Xbox CEO Asha Sharma alluded to major changes, and difficult ones. "For some of you, these realities will be surprising and even frustrating to discover," she told staff. "We won’t succeed by hiding hard truths, nor will we succeed by doing the same thing and expecting different results."