Just a week after South of Midnight developer Compulsion Games returned to independence amidst the latest round of sweeping layoffs at Xbox, the studio is looking for work. In a message posted on LinkedIn, Compulsion said it is “expanding opportunities to collaborate with studios across the games and entertainment industry.”
“We invite partners to leverage the talent and creativity of the award-winning team behind South of Midnight, a game that was honoured with a BAFTA Award, a Peabody Award, seven Canadian Game Awards, and recognized on multiple ‘Best Games of 2025’ lists,” Compulsion wrote.
“With deep experience in creating acclaimed original IP, we bring our artistry, technical expertise, and collaborative approach to every project. We are excited to support the development of memorable experiences that engage and entertain players around the world.”
It’s a disheartening message. South of Midnight did indeed win all those awards and more—one high-profile win that went unmentioned is the Games for Impact crown at the 2025 Game Awards—and we liked it quite a lot too: It earned at 83% in our review, and reviewer Andrea Shearon went on to play through it twice after after the fact, selecting it as her Personal Pick Game of the Year for 2025.
It wasn’t a huge seller, though, and all that critical praise wasn’t enough to secure Compulsion a future as an Xbox-owned studio, much less ensure it a follow-up release. Microsoft, which acquired Compulsion in 2018, earned some plaudits for allowing it to go independent rather than simply closing it, but my worry at the time seems reinforced by this post. Cutting Compulsion loose as an “independent” studio, especially in the oxygen-deprived environment the game industry has blundered into, may have merely delayed the inevitable falling curtain—and, one might argue, gives Xbox a way to avoid blame should that happen.
Compulsion launched as a support studio—its website says it got its start in 2009 “as a home office providing services to other game studios,” including THQ and Atari—so this isn’t entirely unfamiliar territory. But the environment then was very different than it is today: Sweeping layoffs and studio closures over the past several years have left countless developers without work in an increasingly constrained industry.
Quite a few Compulsion employees seem to share that feeling: A couple weeks before the independence announcement, numerous people at the studio began actively looking for new jobs, reportedly with the blessing of studio leadership.
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