Multiple reports describe unrest within Xbox, including leadership departures and potential studio closures. Polygon reports that the company is in “tumult,” stating that the Head of Xbox Game Studios has left and that Xbox may shut down Compulsion Games. PC Gamer similarly reports that Xbox is closing the South of Midnight studio, identifying Compulsion Games as the developer behind the title. Both accounts cite company coverage earlier in the year that highlighted Compulsion Games’ developers and awards, with the current reports indicating a reversal of that messaging. PC Gamer adds that the alleged studio closure follows closely on the heels of another report about possible major layoffs at Xbox. The sources do not fully agree on all details beyond the central claims, and neither report provides comprehensive confirmation details such as official statements, affected personnel counts, or timelines. However, the shared thrust is that Xbox is facing organizational changes, including leadership departures and potential winding down of Compulsion Games.