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Xbox Reportedly Plans to Close Compulsion Games

The decision follows a push from Xbox leadership to sharply reduce spending after the division’s profit margin fell to 3 percent and could presage broader job cuts.

Overview

  • Two gaming outlets reported that Xbox is planning to shut down Compulsion Games, though Microsoft has not publicly confirmed the move.
  • The studio’s public LinkedIn lists about 90 employees while reporters say the actual headcount may be higher and several staff have posted that they are seeking work.
  • The closure reports stand in tension with hiring activity two months ago when Compulsion’s talent lead advertised roles for a new, unannounced IP.
  • Xbox CEO Asha Sharma’s recent message about a 3 percent 'accountability margin' and unsustainable investments has raised expectations of further layoffs and company restructuring.
  • Compulsion, which Microsoft bought in 2018 and whose recent title South of Midnight won a Peabody Award, joins other studios and staff that could be affected as Xbox resets its content and spending plans.