Microsoft (MSFT) gaming studio Compulsion Games, part of its Xbox Game Studios unit, is planning to shut down, video game news website Kotaku reported Monday, citing a source familiar with the matter.
Kotaku said it was unclear how many employees would be affected, though multiple staff members have recently posted online that they are seeking work.
Compulsion developed titles including South of Midnight and We Happy Few. The reported shutdown comes amid broader restructuring within Microsoft's gaming division and follows reports of expected layoffs. Studio leadership is currently in negotiations with Microsoft over the studio's fate.
The studio's South of Midnight has received industry recognition, including a Peabody Award earlier this year.
Xbox did not immediately respond to' request for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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