Xbox turmoil continues with a studio closure and executive departures

Article excerpt

Xbox is shutting down Compulsion Games, the studio developing South of Midnight, as part of a broader restructuring announced by boss Asha Sharma last week. The closure follows a memo warning of a "reset" and expected layoffs across the division. Since taking over in February, Sharma has pursued aggressive cost-cutting and strategic shifts, slashing Game Pass prices and securing exclusive deals for Gears of War: E-Day and Clockwork Revolution, but the studio closure signals deeper challenges within the Xbox organization.