Xbox Reportedly Closing Compulsion Games; Arkane Also at Risk

Microsoft is reportedly preparing to close Compulsion Games, the Canadian developer responsible for *Contrast*, *We Happy Few*, and the critically acclaimed *South of Midnight*. According to Kotaku, these potential cuts could impact over 90 employees. Microsoft acquired Compulsion Games in 2018.

Further reports, including one from Mike Straw of Insider Gaming, indicate that Arkane is also slated for closure as part of a "reset" within Microsoft's Xbox division. Microsoft gained ownership of Arkane following its acquisition of Bethesda owner ZeniMax. Arkane Austin was previously closed in May 2024, while Arkane Lyon continues to develop the upcoming *Marvel's Blade* game.

These reported studio closures and staff reductions align with earlier reports suggesting Microsoft would implement cuts and potentially close studios in July, coinciding with the end of the company's fiscal year on June 30. Recent leadership changes include the departure of Xbox Games Studios boss Craig Duncan and his chief of staff.

Microsoft CEO Satya Nadella has recently discussed making changes to Xbox aimed at improving its economic stability. In a blog post outlining plans for Xbox over the next 100 days, Xbox CEO Asha Sharma alluded to significant and challenging changes for staff. She told employees, "For some of you, these realities will be surprising and even frustrating to discover." Sharma added, "We won’t succeed by hiding hard truths, nor will we succeed by doing the same thing and expecting different results."

(Source: GameSpot)