Xbox Is Planning To Shutter Peabody-Award-Winning South Of Midnight Studio Compulsion Games

Xbox is planning to shut down Compulsion Games, developer of Peabody Award-winning South of Midnight and We Happy Few, Kotaku has learned.

It is unclear how many individuals total will be impacted; the studio’s LinkedIn page says around 90 individuals work there, though Kotaku understands the actual total to be higher, and multiple individuals have now posted on social media looking for work. Just two months ago, the studio’s talent lead was posting job listings on LinkedIn for the studio, advertising work on a “fascinating, intriguing, brand new IP.”

This comes just days after Xbox CEO Asha Sharma and Microsoft Game Studios head Matt Booty published an open email to the company revealing Xbox’s recent financial and logistical struggles, amid reports that mass layoffs were expected to begin in the coming weeks.

Just earlier today, The Game Business reported that head of Xbox Game Studios Craig Duncan had resigned after less than two years in the role.

Sharma had praised the studio just earlier this year. “The big things that we’re thinking about are we want to make great games,” she told Game File in April. “And so, you know, [chief content officer Matt Booty] can talk about that. The Peabody Award for South of Midnight, Kiln coming out today. Like, I just feel like every day there’s something wonderful there.”

Booty, meanwhile, had pointed to Compulsion as an example of Xbox’s pursuit of award-winning games. “South of Midnight today won a Peabody Award, which I think is such a validation of the storytelling capability of games these days,” he said in the same interview. “And that’s right on the heels of them winning a BAFTA for new IP a couple Fridays ago. And, that is our goal, right? I mean, we run a portfolio and our portfolio includes some of the biggest franchises on the planet—Call of Duty and Minecraft—but we’re also dedicated to places where new [intellectual property] can come to life and where these stories can be told, you know, in our studios like Compulsion and Double Fine that got some nominations for Keeper.”

Xbox did not respond to Kotaku‘s request for comment.