Xbox is reportedly planning to shut down Compulsion Games, the developer behind South of Midnight, as part of a broader internal reset. This move follows an internal memo from Xbox boss Asha Sharma warning of restructuring and potential layoffs due to an overextended studio system. The closure coincides with several high level executive changes, including the departure of Craig Duncan.
Key details
- Kotaku reports the planned closure of Compulsion Games following a leadership memo.
- Xbox head Asha Sharma has overseen major changes since taking her role in February.
- Recent business shifts include a price reduction for Xbox Game Pass.
- Future titles Gears of War: E-Day and Clockwork Revolution are confirmed as Xbox console exclusives.
Why it matters
The closure of a studio with a distinct creative portfolio signals a major shift in Microsoft gaming strategy. After years of acquiring developers to bolster the Game Pass catalog, the company is now prioritizing fiscal efficiency and core franchises over studio volume. This restructuring puts increased pressure on remaining first party developers to deliver high performance results as Microsoft moves away from its previously expansive approach to studio management. Watch for whether this consolidation leads to a narrower focus on established blockbuster intellectual property at the expense of experimental projects.
Read the full story at The Verge
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