00:00Xbox layoffs reportedly begin at Compulsion Games, studio behind South of Midnight.
00:06Reports suggest that a new wave of layoffs at Xbox has begun, with Compulsion Games,
00:12the studio currently developing South of Midnight, appearing to be among the first affected.
00:17Multiple developers from the Montreal-based studio have indicated on LinkedIn that they
00:22are no longer with the company, according to a reporting compiled by journalist Mr.
00:26Rebs. The post points to significant staffing changes taking place within the studio, through
00:32the full scope of the layoffs, has not been officially confirmed by Xbox or Compulsion.
00:37The situation comes amid broader restructuring efforts across Xbox, which are reportedly
00:42being overseen under new CEO Asha Sharma. According to earlier reporting, the changes could involve
00:48major shifts across Xbox game studios, including potential closures or the possibility of some
00:54studios being spun out as independent entities.
00:58The future of Compulsion Games remains uncertain. Earlier in June, reports suggested Xbox had
01:04considered shutting down the studio, although leadership at Compulsion was also said to be
01:08in discussion about a potential separation or spin-off arrangement instead.
01:13Compulsion Games, founded in 2009 and based in Montreal, became part of Microsoft's growing
01:19portfolio of studios in 2018 following the company's acquisition wave. The developer is best known
01:25for titles such as Contrast and We Happy Few, and is currently working on the upcoming action-adventure
01:30game, South of Midnight.
01:37The reported layoffs may be the first step in a wider restructuring effort across Xbox's internal studios.
01:43Previous reports have suggested that additional changes could follow after June 30th, coinciding
01:49with the end of Microsoft's fiscal year. Other studios under the Xbox umbrella, including Double Fine
01:55and Ninja Theory, have also been rumored to be in discussions regarding their long-term status
02:00within Microsoft's structure, with speculation that some teams could be spun out or face further
02:05restructuring. However, no official updates has been provided regarding those negotiations.
02:11At this stage, neither Xbox nor Compulsion Games has issued a detailed public statement on the
02:18reported layoffs, leaving the studio's future direction unclear as the broader Xbox restructuring
02:24continues to unfold.
02:32So, uh, so, what, um, that sucks, it sucks if South of Midnight probably might not, it could be canceled,
02:44especially if the, it sounds like they're getting rid of many of the people from Compulsion Games.
02:49It, it really depends how many people were working in that studio and how many people are being let go.
02:56If this is true, uh, Compulsion Games and Microsoft have both stayed silent on this.
03:01So, we're just gonna operate under the assumption that this is a true story.
03:08Um, South of Midnight, that, that's up in the air now, depending on whether this is true or not.
03:16If this is true, I don't think South of Midnight's gonna ever be released. Uh, it's probably gonna be canceled.
03:26Um, with the, uh, but, I mean, also, uh, one thing I was gonna say, you knew this was gonna
03:35happen.
03:36And it's, I don't think this is gonna be the end of it. Um, I think this is just the
03:41beginning of Asha Sharmae
03:42having to do what she has to do to clean up Phil Spencer's mess.
03:47Um, I mean, Phil Spencer, he thought the best way to remedy costs from the Activision Blizzard merger
03:55was to put one Call of Duty on Game Pass and then fire people to make up the money.
04:04He, uh, he even, uh, Phil Spencer even said he knew when the merger was gonna go through
04:09that he knew he was gonna have to fire people.
04:14Um, a more sane person would have thought, how can we make money without firing people?
04:21What are we spending tens of billions of dollars on?
04:25How can we make, how can we get a return on our investment?
04:29Again, I'm thinking rationally. Phil Spencer seems he hasn't had a rational thought in years.
04:36Um, but back to Asha Sharma, you know, it sucks that they have to shut this studio, if they
04:44have to shut this studio down. It sucks if they're gonna have to shut more studios down.
04:48But these effects in motion, were set in motion years ago, for years, for letting Phil Spencer
04:56continue to run Microsoft into the ground. I'm not convinced, I'm, I'm not convinced he wasn't
05:03there to kill Microsoft. Um, you know, so, with, and, and now, I mean, and anyone who was
05:15gonna come in and write the ship, like Asha Sharma has been selected, she's gonna have to
05:21do things, uh, to remedy Phil Spencer's, uh, mess. With, uh, purchasing studios and thinking
05:30the way he'd make money back is by letting people go. So, you know, I wouldn't blame Asha
05:37Sharma for this. Like I said, these, these, I think, I believe these most, these, uh, actions
05:44were set in motion months or even years ago. Um, and it's just, someone was gonna have to
05:53do it eventually. You know, I was starting to wonder if Microsoft was just gonna let Xbox
05:58run itself into the ground and then be like, okay, where, where are the gaming business?
06:03Um, thankfully, that's not what happened. Cause imagine a world where you just got PlayStation
06:09and Nintendo to choose from unless you're a PC gamer. So, yeah, um, like I said, I'm, I
06:19won't be, if we hear that, like, more studios have been shut down or that this one was in fact
06:25shutdown or that, or had a big, uh, not even shutdown, but had a big, um, exodus, then, um,
06:38then it's, it's like not surprising.
06:43So, but I mean, I still don't think Asha Sharma is to blame because, you know, Phil Spencer ran
06:48things off, uh, off, uh, he did an awful job running this for years. So, obviously, it's
06:57gonna take years, as I said in the last podcast, to fix what he broke. Um, that's, that's the
07:06way I look at it. Um, but what do you think? Uh, let me know in the comments. Uh, do
07:13you,
07:14um, how do you feel about Xbox as a, what I really am interested in hearing is not only
07:20how do you feel about Xbox's future, but how do you feel about Asha Sharma? I know a
07:26lot of people are unfairly, uh, critical of her. Um, but it's, you know, where were these
07:36people, these people that are, like, highly critical of Asha Sharma, where were you when
07:42Phil Spencer was making bad decision after bad decision? I was calling him out. There
07:47are still clips on the, uh, my YouTube about the, uh, the Let's Discuss Gaming podcast where
07:53I called him out when working with Dr. Games 101. I called out Phil Spencer, said he made
07:58this was a bad decision, this was a bad decision. So, you know, it's kind of unfair that now everyone's
08:05saying, oh my god, uh, Xbox is at the end, Xbox is gonna die, and it's like, where were you
08:12when Xbox was, um, yeah, but I want to know what you think, and what were you thinking when
08:23Phil Spencer was making bad decisions? I'm not gonna rehash it from here, I'm not gonna go into
08:28that again, but, you know, what were you thinking, uh, when Asha Sharma came in, hopefully to right the
08:35ship, which it looks like she did some, she's doing some good, like, uh, uh, lowering the price
08:42of Game Pass Ultimate, um, I don't know if that's gone into effect yet, um, but, like, I heard Ultimate
08:50went down from $29.99 a month to $22.99 a month, um, but what do you think? Uh, what,
08:58and what do you
08:59take of Phil Spencer when he was basically, um, breaking things to kill Xbox? Let me know
09:07with that.
