Overview
- Compulsion confirmed this week that it has been divested by Xbox and is operating as an independent studio after Microsoft reorganized its gaming division.
- In a public LinkedIn post the studio invited other developers and entertainment companies to hire it for co‑development, support, or partnership projects to keep the team employed.
- Compulsion’s recent game South of Midnight won multiple major awards and strong reviews but did not deliver the sales needed to fit Xbox’s new priority on big, reliable franchises.
- Reports say many Compulsion staff began looking for new roles before the formal split, and the studio’s move to take on contract work appears aimed at securing short‑term revenue while it plans future original projects.
- The change highlights a wider industry effect of Xbox’s cuts: thousands of job losses, more mid‑size studios forced into independence, and a likely rise in studios relying on co‑development and contract work to survive.