Compulsion Games Inc. is a Canadian video game developer and a studio of Xbox Game Studios based in Montreal. Established in 2009 by ex-Arkane Studios developer Guillaume Provost, the studio developed the 2013 puzzle-platform game Contrast, the 2018 survival horror game We Happy Few and the 2025 action-adventure game South of Midnight.
Source: Wikipedia
Just days after buying back its independence from Xbox, Compulsion Games, developer of South of Midnight and We Happy Few, is seeking new collaboration opportunities. The studio is open to supporting other projects, indicating a potential shift in its immediate focus. As the gaming industry navigates cost-cutting measures, Compulsion Games' next move is closely watched.
Microsoft's latest round of layoffs includes spinning off Double Fine Productions, Compulsion Games, Ninja Theory, and Undead Labs from Xbox, with Arkane Lyon exploring strategic options. The affected studios will retain or receive support for their IP and in-development games. This move is part of Xbox's "most significant restructure" in its history, impacting approximately 3,200 employees.
Microsoft's "reset" memo has cast a shadow over several Xbox studios and games. Notably, the Forza Motorsport franchise has been cancelled, and The Outer Worlds series has been discontinued due to poor sales of The Outer Worlds 2. Studios like Compulsion, Ninja Theory, and Double Fine are in negotiations, putting titles like Psychonauts, Senua (Hellblade series continuation), and South of Midnight at risk.
Discover why South of Midnight, an adventure game set in the Deep South with stunning stop-motion animation, is a hidden gem on Xbox Game Pass, despite its developer Compulsion Games facing potential closure. With a narrative driven by southern folklore and a protagonist with magical abilities, this game stands out. Its success, however, may not be enough to save its studio from Xbox's impending "Reset".
Microsoft announces the Xbox Game Pass June 2026 Wave 2 lineup, featuring EA Sports FC 26 and Call of Duty: Vanguard, as the company navigates potential studio closures and a 50% Game Pass subscriber drop following last year's price hike. The move comes as Xbox faces significant financial challenges, including a 3% gaming business profit margin and a nearly $500 million annual revenue decline. Despite these challenges, the new lineup aims to bolster the service's appeal.
Xbox is reportedly closing Compulsion Games, the studio behind We Happy Few. This move comes after the game's mixed reception and follows a pattern of Xbox Game Studios consolidating its development resources. The closure's impact on the game's support and the studio's future projects is uncertain.
Blizzard's cinematic team will enhance the upcoming Fable, set for autumn 2026. This collaboration promises high-quality visuals and storytelling.