Xbox turmoil continues with a studio closure and executive departures
The Verge·June 15, 2026
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 Revolution Xbox 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 franch …
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