Xbox Faces Studio Closure and Layoff Warnings Amidst Company "Reset"
Xbox is reportedly planning to shut down Compulsion Games, the studio behind *South of Midnight*. This development follows a memo sent last week by Xbox boss Asha Sharma, which warned of an upcoming company "reset" and anticipated layoffs. Sharma, who assumed her role in February, has also overseen recent strategic decisions, including price adjustments for Xbox Game Pass and designating certain titles as Xbox console exclusives.
Xbox is reportedly planning to close Compulsion Games, the development studio responsible for the upcoming title *South of Midnight*. This information emerges amidst broader organizational changes within the Xbox division, following internal communications about a company-wide "reset."
Last week, Xbox boss Asha Sharma issued a memo to staff, signaling an impending company "reset" and forewarning of expected layoffs. The internal communication highlighted various challenges currently facing the business.
Sharma, who took over her leadership position in February, has already implemented several significant strategic decisions. These include adjusting the pricing of Xbox Game Pass and ensuring that titles such as *Gears of War: E-Day* and *Clockwork Revolution* are exclusive to Xbox consoles.
In the aforementioned "reset" memo, Sharma and chief content officer Matt Booty discussed the difficulties impacting the Xbox business model. They specifically noted that the company has "over extended" its studio system, contributing to the need for operational changes.
According to The Verge, these developments suggest ongoing changes within Xbox's operational structure.
