Compulsion Games seeks collaborations after Xbox independence

Compulsion Games announced on LinkedIn that it is open to new collaboration opportunities just days after regaining its independence from Microsoft.

The studio, known for South of Midnight and We Happy Few, stated it wants to support development of memorable experiences elsewhere. "We invite partners to leverage the talent and creativity of the award-winning team behind South of Midnight," the company wrote.

The move follows last week's Xbox layoffs and spin-offs that affected multiple studios. Compulsion Games retains ownership of its game brands including South of Midnight, We Happy Few, and Contrast.

"With Compulsion Games returning to its roots as an independent developer, we are expanding opportunities to collaborate with studios across the games and entertainment industry," the LinkedIn post added. The announcement comes amid 1,600 immediate layoffs at Xbox with another 1,600 planned by next summer.

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News illustration showing the impact of Xbox layoffs with employees in an office packing boxes.
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Xbox announces 3200 layoffs in major restructuring

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Microsoft cut 3200 jobs at Xbox on July 6 as part of the largest restructuring in the division's history. Half the reductions took effect immediately, with the rest scheduled through June 2027. Four studios are leaving the company through spin-offs or sales.

Xbox is preparing to shut down Compulsion Games and is in talks to close Double Fine and Ninja Theory as well. Studio leaders are negotiating with Microsoft over the studios' futures. Heavy job losses are expected even if some studios go independent.

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Microsoft is reportedly in talks to close several Xbox game studios as part of a broader restructuring. Negotiations involve studios behind well-known titles including Psychonauts, South of Midnight, and Hellblade.

Shawn Layden, the former head of Sony Interactive Entertainment America, has publicly commented on recent moves by Xbox. In LinkedIn posts, he described the changes as reflecting a misunderstanding of the industry.

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A new report has described an atmosphere of uncertainty and fear among remaining staff at Xbox following recent restructuring by Microsoft.

CD Projekt Red joint CEO Michał Nowakowski said the studio has indefinitely lost the faith of some fans following the troubled 2020 launch of Cyberpunk 2077.

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Toys for Bob has purchased its independence from Microsoft after years under Activision Blizzard ownership. The move allows the studio to focus on projects like the newly announced Spyro: A Realm Beyond.

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