Compulsion Games is Going Independent After Latest XBOX Layoffs

A new round of XBOX layoffs has arrived, with Compulsion Games among four studios going independent.

A report from last month had already revealed to players that several Compulsion Games developers had posted on LinkedIn stating that they were looking for new work, as rumors about XBOX layoffs were running. Now that the official announcement is out, we have been informed about Compulsion Games’ future.

Compulsion Games Will Transition to an Independent Studio with Its IPs

XBOX has announced that 3,200 employees will be removed through FY27, with 4 studios going independent after the layoffs, including Compulsion Games. Compulsion Games will be returning to management alongside Double Fine Productions; they will transition to independent studios with their IP, catalog, and revenue for their next games.

The statement from Asha Sharma reveals that the company’s business is not healthy and that it has been operating on margins that are sometimes 10 times lower than those of comparable platform and publishing businesses. The company has reached Gen 8 with a smaller install base and higher cost structure. The team was placing its bet on Game Pass, multi-platform, and a broader content portfolio to grow, but this has not done so at the expected pace.

The core business has weakened for them, and there is added investment, teams, and more time; along with that, the industry is now facing the most severe hardware crisis in its history. To help mitigate the situation, they are resetting XBOX, which will involve resetting the portfolio, the platform, and how they operate.

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For more information from Insider Gaming, read about the Lords of the Fallen CEO stating studios earn twice as much from digital sales. Don’t forget to sign up for our weekly newsletter.