Compulsion Games Staff Allowed to Seek New Roles Amidst Xbox Layoff Rumors

Developers at the South of Midnight studio have begun posting job-seeking notices, reportedly with studio leadership's prior approval.

Jun 26, 2026
Industry & Business
Compulsion Games Staff Allowed to Seek New Roles Amidst Xbox Layoff Rumors

Developers at Compulsion Games, the studio behind the upcoming title "South of Midnight," have reportedly been granted permission by leadership to openly search for new employment opportunities. This move comes as speculation mounts regarding potential layoffs at Xbox, with reports suggesting significant upheaval could occur as early as July.

Numerous developers from Compulsion Games have recently taken to professional networking platforms like LinkedIn to announce they are seeking new positions. These posts indicate a proactive approach by staff members to secure future employment ahead of any official confirmation of job cuts. Among those publicly stating they are on the market are writer and narrative designer Bijan Stephen, principal level designer Mike Sklavounos, principal game designer Cameron McGrory, technical animator Ines Bouakkaoui, and dialogue designer Sean Miller.

According to reporting from Bloomberg's Jason Schreier, these public job searches are not necessarily indicative of layoffs that have already occurred. Schreier clarified that Xbox's widespread layoffs are not expected to begin until early July. He explained that at Compulsion Games, studio leadership has given employees permission to look for other roles because job losses are considered highly probable at that time. No Compulsion Games staff have been laid off yet.

Reports earlier this month indicated that Compulsion Games was among several Microsoft-owned studios whose futures were under negotiation. The potential outcomes discussed included studio closure or a transition to an independent entity with new backing. Other studios, such as Hellblade developer Ninja Theory and Psychonauts developer Double Fine, were reportedly in similar situations.

The current situation, with employees openly seeking new jobs, could align with various future scenarios for Compulsion Games, including a complete shutdown or a continuation with a significantly reduced staff if new ownership or independence is achieved.

Sources