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Microsoft Reportedly Closing Compulsion Games, Developer of We Happy

Microsoft is reportedly going to close the Canadian developer Compulsion Games, known for Contrast, We Happy Few, and South of Midnight.

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Microsoft Reportedly Closing Compulsion Games, Developer of We Happy

Microsoft is reportedly going to close the Canadian developer Compulsion Games, known for Contrast, We Happy Few, and South of Midnight.

According to reports, Microsoft is in negotiations with Compulsion leadership over the studio's future, with potential impacts on over 90 employees. Another report suggests that Arkane may also face closure as part of Microsoft's Xbox business reset. Microsoft acquired Compulsion in 2018 and gained ownership of Arkane after acquiring ZeniMax. Arkane Austin was shut down in May 2024, while Arkane Lyon is working on Marvel's Blade. Compulsion's latest release was the acclaimed South of Midnight. Microsoft is expected to make staff cuts and studio closures post-June 30, following the end of the fiscal year. Xbox Games Studios head Craig Duncan and his chief of staff have recently departed. Microsoft CEO Satya Nadella has discussed implementing changes to enhance Xbox's financial stability. Xbox CEO Asha Sharma hinted at significant and challenging transformations in an upcoming blog post, emphasizing the need to face difficult truths for success.

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