Xbox is reportedly shutting down South of Midnight studio Compulsion Games

Microsoft is reportedly shutting down Compulsion Games, the Canadian studio known for South of Midnight, We Happy Few, and Contrast. According to Kotaku, these closures could affect more than 90 employees. This action occurs amid rumors of wider Xbox studio closures as leadership resets the business. Further reports suggest Arkane may also be closed, following the May 2024 shutdown of Arkane Austin, although Arkane Lyon remains active in developing the upcoming Marvel's Blade game.