As the specter of impending layoffs looms over several Microsoft-owned game studios, a notable shift is occurring at Compulsion Games, the studio behind South of Midnight. Developers within the studio have begun signaling their intent to seek new opportunities, a trend that has become increasingly common in the gaming industry during turbulent times.
Signs of Change at Compulsion Games
Many employees have taken to LinkedIn to announce their “open to work” status, a practice that often serves as a precursor to significant workforce reductions. According to reports circulating on Reddit, studio leadership has granted employees permission to explore external job prospects, a clear indication that job losses are on the horizon.
This unexpected development has left some team members, including Principal Level Designer Mike Sklavounos, taken aback. Sklavounos described the situation as “an unexpected turn of events,” highlighting the uncertainty that now envelops the studio. Eurogamer has reported that at least a dozen employees from Compulsion are actively seeking new roles, a considerable figure for a studio with a workforce of approximately 90.
The uptick in job-seeking behavior among Compulsion employees raises concerns about the broader implications for the Xbox gaming division. Earlier this month, reports emerged suggesting that other studios, including Double Fine and Ninja Theory, may also face closure as part of what has been termed an “Xbox Reset.” This initiative, led by CEO Asha Sharma and CCO Matt Booty, stems from their acknowledgment that Microsoft has “overextended” itself through a series of studio acquisitions in recent years. Unfortunately, this miscalculation appears to be resulting in significant consequences for the workforce, with thousands of employees potentially facing layoffs and multiple game projects being canceled.
