Xbox is reportedly considering closing South of Midnight studio, Compulsion Games, with Double Fine and Ninja Theory also allegedly at risk

Microsoft is reportedly considering the closure of several Xbox studios, including Compulsion Games, Double Fine, and Ninja Theory, amid declining revenue. Leadership at these studios is currently in negotiations with Microsoft regarding their future as the company explores restructuring its gaming division.
Why it matters
This reflects a broader trend of consolidation and cost-cutting in the gaming industry following massive acquisitions and shifting market performance.
According to sources, Compulsion leadership is in 'negotiations' over the studio’s fate
The article relies on industry sources and reports, presenting the situation as a business development rather than taking a side.
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