Compulsion Games, known for titles like We Happy Few and South of Midnight, may be facing imminent closure as Microsoft’s gaming division undergoes significant layoffs and restructuring. Reports indicate that Compulsion and Double Fine are in negotiations to potentially spin off to avoid shutdown. Employees have expressed concern over job security, with many searching for new opportunities. Compulsion Games, founded in 2009 and based in Montreal, received critical acclaim for its recent title, South of Midnight, which won several awards. Despite previous praise from Xbox executives for the studio's achievements, the future remains uncertain amid corporate changes.