Multiple reports and circulating rumours say Xbox is considering closing Compulsion Games, the studio associated with the upcoming title “South of Midnight.” The claim is tied to broader concerns about potential Xbox studio closures amid reported changes in leadership and ongoing company restructuring. One source points to additional reporting from Kotaku, which allegedly includes Compulsion Games among early candidates for closure. Another outlet’s coverage is framed as an “update,” suggesting negotiations with Microsoft may be underway, though details of timing, scope, and decision outcomes are not provided in the available summaries. At the same time, the reports acknowledge that the information is spreading primarily through social media and news rumours, indicating that the situation may still be in flux. No official confirmation of a shutdown is included in the provided excerpts, and the available information focuses on the claim that Compulsion Games could be affected, rather than offering verified specifics on affected employees or final corporate actions.