Xbox turmoil continues with a studio closure and executive departures

Xbox announced the closure of Compulsion Games, the studio responsible for the upcoming title South of Midnight, on March 25, 2024. This decision follows a memo sent by Xbox boss Asha Sharma the previous week, signaling a significant "reset" within the company and foreshadowing expected layoffs. Sharma, who assumed leadership in February, has already implemented substantial changes, including a price reduction for the Xbox Game Pass subscription service. The closure of Compulsion Games, a studio founded in 2009 and acquired by Microsoft in 2015, marks a notable shift in Xbox's internal development strategy. Reports indicate that employees at Compulsion Games were informed of the closure on March 25th and that the studio's existing projects, including South of Midnight, will be discontinued. This move is part of a broader restructuring effort within Xbox's gaming division, aiming to streamline operations and potentially refocus resources on other key initiatives. The exact number of employees affected by the closure has not been officially disclosed, but it is understood to represent a significant portion of the studio's workforce. The future of the intellectual property associated with Compulsion Games remains uncertain.