Compulsion Games returned to being an independent studio amidst a new round of layoffs at XBOX. The studio avoided being shut down and is now looking for new collaborations via LinkedIn.

Compulsion Games took to their LinkedIn page on July 13, 2026, to announce that they're looking for opportunities to collaborate with other studios and publishers.

The developer behind the Peabody Award-winning South of Midnight is inviting interested parties to leverage the studio's talent.

"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 from July 13th read.

"With deep experience in creating acclaimed original IP, we bring our artistry, technical expertise, and collaborative approach to every project."

The team at Compulsion Games has previously worked on external projects such as Dungeon & Dragons: Daggerdale and Darksiders.

They have also created three original games, the most significant of which is 2025's South of Midnight. The game had stunning visuals, brilliant characters, and, of course, a story that won it the Peabody Award.

The game received a Metacritic score of 77 and was rated 8/10 by IGN. It was made during the studio's time at XBOX after the gaming giant acquired it in 2018. This was after the studio made We Happy Few.

Compulsion Games is just one of the studios affected by the mass layoffs and restructuring at XBOX.

Studios such as Ninja Theory and Undead Labs are considering new ownership and continue developing Senua and State of Decay 3.

Meanwhile, Double Fine also returned to being an independent studio while Arkane’s management is reviewing future options. Overall, XBOX laying off over 3,200 employees over the course of FY 2027 has sent shockwaves through its various divisions.

Now, fans are rallying against it in a viral forum post.

Fans demand XBOX stop laying off employees and shutting down studios

On Microsoft's official feedback forum, a new post titled "End studio closures and stop the cycle of layoffs" has gathered over 3,500 votes. The creator of the post, Witt Yao, has expressed frustration over XBOX's treatment of its employees and studios.

According to Yao, XBOX has jeopardized the future of various studios, including Compulsion Games, Arkane, Alpha Dog Games, and more.

As a form of pushback, the fans are asking the gaming giant for a different approach. In their list of requests, Yao asks for the company to stop laying off employees for two years.

The post also demands that XBOX stop shutting down studios for good. However, the gaming giant is yet to respond officially.

What do you think about the future of XBOX? Let us know in the comments.

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Written by

Prit Chauhan

Edited by

Pulkit Prabhav