Compulsion Games was one of many affected by the July 2026 XBOX layoffs, and while the studio is now dealing with the idea of going independent again, the developer is celebrating a game of the year win for South of Midnight.
In July 2026, following Asha Sharma’s XBOX layoffs announcement, Compulsion Games revealed it was going independent.
Its recent game, South of Midnight, was received well, even if it didn’t blow everyone away. However, it’s been recognized as a GOTY winner by Games For Change.
Compulsion Games Back to Being Independent After XBOX Layoff

The 2026 Games For Change Festival took place on July 21-22.
It’s a nonprofit organization with a specific goal for its accolades: ‘The annual G4C Awards recognize the year’s most impactful games and immersive experiences.’
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For its main award, Game of the Year, the honor and award went to South of Midnight.
As quoted by Stephen Totilo, the devs offered these words during the acceptance speech:
“South of Midnight is about raising up to challenging times when it gets tough, about growth, about resilience. And the word change right now feels really timely for us because Compulsion Games is going back to being independent. That is scary. That is exciting. We built something special, this team, and I know our team, my friends, our friends, carry our spirit wherever we go and we’ll spread it across the industry.”
It’s some good news for the team following the XBOX split, and it also comes after reports that Compulsion Games is looking for collaboration opportunities.
I think it’s fair to say having a GOTY award under its belt won’t do the developer any harm.
Did you get a chance to play South of Midnight? Let us know via the official Insider Gaming Discord Server.
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