- There were reports that Xbox will be conducting mass layoffs beginning this month.
- The first batch of job cuts has arrived, with Compulsion Games as the studio affected.
- More could follow, as multiple studios are rumored to be the target of the layoffs.
The gaming industry is going through a very strange time right now. On one hand, this year keeps on giving with wonderful releases like 007, Resident Evil Requiem, the upcoming GTA 6, and more, and then there is the darker side.
We are experiencing some of the worst hardware prices ever due to a memory crisis. There have also been constant layoffs and studio closures. And a new wave of Xbox layoffs has begun, affecting Compulsion Games.
Why it matters: There had been strong reports that Xbox would indeed implement job cuts and studio closures amid restructuring, and it seems that the catastrophe is here.
Based on multiple posts on LinkedIn by now former Compulsion Games employees, it is understood that the layoffs have begun. There were rumors that the studio might be shut down, but it seems that it has survived.
Despite the uncertainty around the industry, Xbox is certainly to blame for these unfortunate events. It was claimed that the company asked its studios to focus on awards, and they are getting punished for following that.

Compulsion Games is, of course, the studio behind South of Midnight, which also won an award. It had a decent reception but wasn’t financially successful; the studio did accomplish what was asked of it.
But this is just the tip of the iceberg; there are rumors that the layoffs will be a bloodbath, and the studios that will be affected include Ninja Theory, Compulsion, Arkane Studios, and more.
What are your thoughts on the Xbox layoffs beginning with Compulsion Games? What other studios will be affected? Let us know your opinions in the comments or join the discussion at the official Tech4Gamers Forum.
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News Reporter
Abdullah is an avid gamer who primarily plays single-player titles. If you can’t find him anywhere, he’ll probably be at his desk playing The Witcher 3 for the millionth time. When he isn’t playing games, he’s either reading or writing about them.






