Ever since Xbox's 2026 Game Showcase, there's been a sense of dread looming over the brand.
A cloud of "significant layoffs" coming for various Xbox studios has been in the air for weeks. That news eventually shifted from layoffs to total closures. With Ninja Theory (Hellblade), Arkane (Marvel's Blade, Dishonored), and Compulsion (South of Midnight), some of the few that are reportedly on the chopping block.
Todd Howard gave a promising update for Arkane Studios and their upcoming Marvel's Blade game, saying that he "saw some stuff [the other day], and the folks at Arkane are doing a really, really great job."
Not every studio in the Xbox family is safe, though, and after rumors and speculation, it seems layoffs have, unfortunately, begun.
Several Developers at South of Midnight's Compulsion Games Have Said They Have Been Let Go
As spotted by Rebs Gaming on X, several former developers at Compulsion Games have said their time at the company has come to an end. There does not seem to be a common thread among the departments that have been hit as well; some of the developers affected worked as a narrative designer, 3D environment artist, character concept artist, and dialogue designer....
