The video game industry is no stranger to heartbreaking news and the latest cycle Cuts at Microsoft-owned studios it is another continuation of this. They say people become numb to certain feelings, and it seems we’ve reached a point in this age of repetitive news where my own emotions are beginning to shine through.
On June 25, 2026, game reporter Rebs Gaming By stating that it has shared the latest update on X Cuts had begun in the Compulsory Gamesthe team responsible for development South of midnight. We knew it was coming, and in fact many were hoping that these studios would be potentially bought out so that they could continue to operate and make a living under another publisher.
It was known for its different flavors with names like Compulsions Games we are happy South of midnightand my personal favorite, Contrast. A film noir-inspired platformer puzzle game, Contrast was the perfect encapsulation of what you’d expect. Compulsory games.
These cuts mark a bigger change in Microsoft’s gaming division Asha Sharma looks to ‘right the ship’ of the declining Xbox brand. As both budgets and studios within the group exceed a reasonable amount, steps are taken to mitigate the problems before a bigger collapse occurs.
Don’t get me wrong, I’m not advocating it at all. I remember writing another article about its closure a while back Hi-Fi Rush developer Tango Gameworkswhere I mention it Microsoft shouldn’t buy companies it can’t afford.
It is to be hoped that these layoffs will not lead to the complete closure of the Mandatory Games. Hopefully, their uniqueness is better focused on games like previous entries, such as Contrasts, rather than broader, lower-budget ventures.
Responses to the news have been mixed. Some fans lament the loss of potential sequels or new ideas from a studio known for taking creative risks. Others claim that such adjustments are essential for long-term viabilityespecially when resources need to be reallocated to projects with wider appeal.
What saddens me is that regardless of the current need, I feel like these decisions are still a reflection of the direction Xbox has taken before. Of course, Phil Spencer is no longer at the helm, but people like Matt Booty are still around to oversee the previous operations.
To make matters worse, Xbox has more to do with ongoing discussions between a group of studios. ninja theory, Twice as niceand more are under potential closing stress or layoffs within its walls. We’ve heard this before Ninja theory All done, Senua’s reveal is a last-ditch effort to give the studio a fighting chance to be bought.
Regardless, one has to hope that the future of these studios is met with a gentle hand that guides them into the light instead of shutting them down forever.
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