A wave of job‑seeking posts from Compulsion Games developers has raised fresh concerns about the studio’s future, with several staff members now publicly indicating they are searching for new roles. This would indicate that word has begun to spread internally that layoffs are coming down the pipeline from Microsoft in an effort to cut costs.
As spotted by Insider Gaming, none of the developers have explicitly mentioned layoffs, but the timing and volume of posts imply that word of layoffs has begun to spread internally. This follows earlier rumours that Compulsion Games would be included in a wave of Xbox studio closures expected to be finalised in July, ahead of Microsoft's next quarterly earnings report.
Earlier reporting indicated that Compulsion, Double Fine and Ninja Theory were in negotiations with Microsoft to either go independent or find a buyer for the studio. Previous reporting also indicated that Ninja Theory's next Hellblade game, simply titled ‘Senua', was announced to attract investors before Microsoft finalises its plans.
Compulsion Games was acquired by Microsoft back in 2018 alongside Ninja Theory, Playground Games, Double Fine, InXile and Obsidian Entertainment. Since joining Xbox, the studio has only released one new title, South of Midnight, which launched in 2025 to minimal fanfare. Before the acquisition, Compulsion gained attention for We Happy Few, a game that went viral at reveal but ultimately struggled to meet player expectations.
KitGuru Says: I think one of the biggest factors here is location. Double Fine is based in the notoriously expensive San Francisco area, while Compulsion Games is based in Montreal, another major city where game studios have been struggling to survive in recent years. Hopefully those impacted can find new roles soon, but finding something local in those areas is going to be increasingly difficult as more studios close.
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