Xbox to shut down South of Midnight developer weeks after launch

Kotaku reports Xbox is closing Compulsion Games, the Montreal studio behind South of Midnight, an action-adventure title released April 8, 2025. Microsoft has not officially confirmed the closure. The move extends a pattern of studio shutdowns since the Activision Blizzard acquisition in October 2023—including Tango Gameworks, which shipped the acclaimed Hi-Fi Rush before closure. Microsoft appears to be consolidating toward fewer, larger bets rather than maintaining a broad portfolio.