Dozens Depart Compulsion Games Amidst Xbox Layoff Rumors

At least a dozen employees have announced their departure from the South of Midnight developer, coinciding with reports of significant restructuring within Xbox Game Studios.

Jun 25, 2026
Industry & Business
Dozens Depart Compulsion Games Amidst Xbox Layoff Rumors

At least a dozen employees have departed Compulsion Games, the studio behind the award-winning title South of Midnight. This wave of departures comes as reports suggest Microsoft is planning widespread layoffs and potential studio closures across its Xbox division.

Several former Compulsion Games staff members have shared updates on LinkedIn over the past week, indicating their departures. Among those announcing they are looking for new opportunities are Principal Level Designer Mike Sklavounos, former Principal Game Designer Thomas de Rego, Game Writer and Narrative Designer Bijan Stephen, Senior Technical Artist Marc-André Voyer, Senior Environment Artist Jasjot Singh, Technical Animator Ines Bouakkaoui, and Dialogue Designer Sean M.

While the exact number of affected individuals is unclear, the volume of public announcements suggests a notable disruption at the Canadian studio. Compulsion Games, known for We Happy Few and the recently released South of Midnight, was acquired by Microsoft in 2018. South of Midnight has received critical acclaim, including a Peabody award and a BAFTA for best new intellectual property.

The departures from Compulsion Games follow earlier reports that Microsoft is considering substantial layoffs within its gaming division. Other studios reportedly earmarked as potentially impacted include Double Fine and Ninja Theory, the developer of Hellblade.

Sources