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Xbox Layoffs Begin at Compulsion Games South of Midnight Studio Hit by Restructuring

2026-07-01 3 Dailymotion

Reports indicate that Xbox's latest round of layoffs has begun, with Compulsion Games—the studio behind the upcoming *South of Midnight*—appearing to be among the first affected. Multiple developers have announced their departures, raising questions about the future of the studio as Microsoft's broader Xbox restructuring continues.<br /><br />In this video, we break down:<br />• The reported layoffs at Compulsion Games<br />• What this means for South of Midnight<br />• Rumors surrounding Xbox studio restructuring<br />• Possible spin-offs and studio closures<br />• What could happen after Microsoft's fiscal year ends<br /><br />What do you think? Should Microsoft keep investing in studios like Compulsion Games, or is restructuring inevitable? Let me know in the comments.<br /><br />🎮 Follow me on Twitch: https://www.twitch.tv/rapperjjj<br /><br />👍 Like, Subscribe, and turn on notifications for more gaming news, industry analysis, retrospectives, and discussions.<br /><br />#Xbox #SouthOfMidnight #CompulsionGames #GamingNews #Microsoft

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