Microsoft is closing the studio behind the new game South of Midnight

Xbox is shutting down Compulsion Games in Montreal, the studio that made South of Midnight, which launched April 8. The company has not officially confirmed the closure. This is part of a broader pattern: Xbox has shut down several studios since buying Activision Blizzard in 2023, including the studio behind the acclaimed game Hi-Fi Rush. Microsoft seems to be focusing on fewer, bigger projects rather than supporting many studios.