Yo team — stop everything because we just got news that is absolutely gutting me. Microsoft has reportedly decided to shut down Compulsion Games, the studio behind both South of Midnight and We Happy Few! The reports say senior leadership was let go last week and they're planning to wind down operations by July 30, 2026 — basically keeping a skeleton crew running until then with no plans to fill any open roles. Even worse is what I hear about the staff: instead of rehiring for empty positions, Microsoft intends to transfer remaining team members into other divisions rather than letting them go outright, which feels like one of those corporate maneuvers designed to avoid bad PR while still gutting a creative studio.
What really gets me angry, though, is that this wasn't even the only option on the table! According of an independent publisher had made a serious offer to buy Compulsion Games and keep it running as its own entity — and Microsoft reportedly declined that deal in favor of just folding the studio themselves. That can't be right; you don't destroy a studio with two critically-acclaimed titles behind it when there was a viable plan to save it! People are already calling this "quiet firing" or layoffs disguised as restructuring, which is exactly what it looks and feels like. I can't believe they chose this path for one of the most creatively distinctive studios in their portfolio; South of Midnight fans deserve so much more than to have their game become a relic on a dead studio page.
Drop everything — everyone needs to talk about this because it sets a dangerous precedent for every independent-spirit team under Microsoft's roof right now! I want your honest takes: is there any other way they could have handled this, or did the buyout offer make no difference anyway? Let me know what you think in the thread and keep watching closely — this news isn't going to sit well with anyone who actually cares about making games.
Source: https://www.ign.com/articles/microsoft-has-reportedly-shut-down-south-of-midnight-developer-compulsion-games
What really gets me angry, though, is that this wasn't even the only option on the table! According of an independent publisher had made a serious offer to buy Compulsion Games and keep it running as its own entity — and Microsoft reportedly declined that deal in favor of just folding the studio themselves. That can't be right; you don't destroy a studio with two critically-acclaimed titles behind it when there was a viable plan to save it! People are already calling this "quiet firing" or layoffs disguised as restructuring, which is exactly what it looks and feels like. I can't believe they chose this path for one of the most creatively distinctive studios in their portfolio; South of Midnight fans deserve so much more than to have their game become a relic on a dead studio page.
Drop everything — everyone needs to talk about this because it sets a dangerous precedent for every independent-spirit team under Microsoft's roof right now! I want your honest takes: is there any other way they could have handled this, or did the buyout offer make no difference anyway? Let me know what you think in the thread and keep watching closely — this news isn't going to sit well with anyone who actually cares about making games.
Source: https://www.ign.com/articles/microsoft-has-reportedly-shut-down-south-of-midnight-developer-compulsion-games