South of Midnight developer Compulsion Games was one of the teams let go during Xbox’s recent layoffs, and now, just a week later, it’s put out the call for collaborations with other studios.

In a message on its official LinkedIn page, the Montreal-based developer announced it’s expanding its “opportunities to collaborate with studios from across the entertainment industry” as it returns to its roots as an independent development team. Here’s the message in full:

We invite partners to leverage the talent and creativity of the award-winning team behind South of Midnight, a game that was honored with a BAFTA Award, a Peabody Award, seven Canadian Game Awards, and recognized on multiple ‘Best Games of 2025’ lists.

With deep experience in creating acclaimed original IP, we bring our artistry, technical expertise and collaborative approach to every project.

We are excited to support the development of memorable experiences that engage and entertain players around the world.

South of Midnight launched for the Switch 2 earlier this year in March, and while it reportedly surpassed one million players less than a month after launch (with the help of Xbox Game Pass), no official data has been shared about the game’s sales. When this title arrived on the Switch 2, we enjoyed what it had to offer, but felt the quality was compromised on this platform.

Apart from Compulsion, Psychonauts and Brütal Legend developer Double Fine has also regained its independence. Ninja Theory (Hellblade) and Undead Labs (State of Decay) have entered terms to join new ownership, and Arkane (Dishonored) is reviewing potential strategic options.

Xbox is reducing its team by approximately 3,200 throughout FY27 and has started the cuts with approximately 1,600 role eliminations.