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Montreal Studio Sweeps Awards Season While Facing an Uncertain Future
Compulsion Games' South of Midnight won a BAFTA and Peabody Award, even as reports surfaced of Xbox restructuring threatening the studio
Published: July 19, 2026
Montreal-based Compulsion Games has had a landmark awards run with South of Midnight, a narrative-driven game about a young woman confronting supernatural folklore in the American South after a hurricane devastates her hometown. The title has collected honours including a BAFTA for new intellectual property, a Peabody Award, and seven Canadian Game Awards. Despite this success, reports emerged that parent company Xbox is undergoing layoffs and restructuring that could affect the studio's future, though Compulsion later confirmed on social media that it would continue operating, with plans to return to independent management. Industry observers say the situation highlights how even critically celebrated Canadian studios remain financially vulnerable amid rising development costs.
