
South of Midnight developer Compulsion Video games was one of many groups let go throughout Xbox’s current layoffs, and now, only a week later, it is put out the decision for collaborations with different studios.
In a message on its official LinkedIn web page, the Montreal-based developer introduced it is increasing its “alternatives to collaborate with studios from throughout the leisure business” because it returns to its roots as an impartial growth staff. This is the message in full:
We invite companions to leverage the expertise and creativity of the award-winning staff behind South of Midnight, a recreation that was honored with a BAFTA Award, a Peabody Award, seven Canadian Recreation Awards, and acknowledged on a number of ‘Finest Video games of 2025’ lists.
With deep expertise in creating acclaimed unique IP, we carry our artistry, technical experience and collaborative strategy to each mission.
We’re excited to assist the event of memorable experiences that interact and entertain gamers around the globe.
South of Midnight launched for the Swap 2 earlier this 12 months in March, and whereas it reportedly surpassed a million gamers lower than a month after launch (with the assistance of Xbox Recreation Cross), no official information has been shared in regards to the recreation’s gross sales. When this title arrived on the Swap 2, we loved what it needed to provide, however felt the standard was compromised on this platform.
Other than Compulsion, Psychonauts and Brütal Legend developer Double Fantastic has additionally regained its independence. Ninja Concept (Hellblade) and Undead Labs (State of Decay) have entered phrases to hitch new possession, and Arkane (Dishonored) is reviewing potential strategic choices.
Xbox is lowering its staff by roughly 3,200 all through FY27 and has began the cuts with roughly 1,600 function eliminations.

