Xbox turmoil continues with a studio closure and executive departures

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Jay Peters is a senior reporter covering technology, gaming, and more. He joined The Verge in 2019 after nearly two years at Techmeme.

Last week, Xbox boss Asha Sharma sent a memo warning of an Xbox “reset” ahead of expected layoffs, and today, Kotaku reported that Xbox plans to shut down Compulsion Games, the studio behind South of Midnight.

Since taking over in February, Sharma has made some big decisions, including cutting the price of Xbox Game Pass and making Gears of War: E-Day and Clockwork RevolutionXbox console exclusives. But in their “reset” memo, Sharma and chief content officer Matt Booty discussed many challenges facing the Xbox business, including that it has “over extended” with its studio system:

We are the fortunate stewards of industry-defining franchises that have enormous potential and player demand, but we have not adequately funded them to compete and win. At the...

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