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South of Midnight dev successfully separates from Xbox and is now fully independent

bekir August 21, 2026 3 min read 4 views

Compulsion Games, the studio behind titles such as South of Midnight, We Happy Few, and Contrast, has achieved full independence, severing all ties with its former parent, Xbox.

Following a strategic reset led by new Microsoft CEO Asha Sharma, Compulsion finalized its exit from the Microsoft ecosystem, as confirmed by CEO Guillaume Provost during a recent GamesBeat interview.

Consequently, Compulsion is reclaiming the publishing rights for its catalog, ensuring that future sales funnel directly to the studio instead of Microsoft.

Provost affirmed, “We have successfully reclaimed our intellectual property, and the publishing rights are being restored to Compulsion.” He added that a transition window remains with various platform holders, but purchases during this period will still benefit the studio.

Analysis: This move signals a broader industry trend toward studios reclaiming IP and publishing control, potentially reshaping revenue models and fostering greater creative autonomy.

The 2025 third‑person action title debuted to solid critical reception and has since collected multiple accolades, such as Games for Impact at The Game Awards and Outstanding Achievement in Animation at the 28th D.I.C.E. Awards.

After parting ways with Microsoft, the studio now operates independently, and maintaining unity was pivotal, says Provost. “I negotiated this transition with the team’s best interests in mind,” he explained. “When I asked whether they wanted to remain together, they replied, ‘We’d rather eat rocks and drink gasoline than be divided.’”

GamesBeat reports that a handful of employees departed or started job hunting immediately after Provost warned them about the studio’s potential shutdown, yet the majority of senior staff remained committed. Looking ahead, the studio plans a measured pace, and Provost indicated he might postpone seeking additional capital for the time being.

“Moments like these are a catalyst for change and opportunity,” he said. “When you launch a venture in challenging times, you’re forced to lay down a solid, lean foundation. The economic climate teaches you to be thrifty and efficient, and I believe we’ll end up with exceptionally robust structures. It’s the same kind of environment that shaped my studio’s beginnings.”

❓ Frequently Asked Questions (FAQ)

What does Compulsion Games' independence mean for its future releases?

It allows the studio to control its own publishing schedule, revenue streams, and creative direction, freeing it from Microsoft’s ecosystem and enabling it to release games on its own terms.

How will the publishing rights change after the split from Xbox?

Compulsion has reclaimed all intellectual property and publishing rights for its catalog, meaning future sales will funnel directly to the studio rather than through Microsoft’s publishing channels.

What impact could this move have on the broader gaming industry?

It signals a trend of studios seeking IP and publishing autonomy, potentially reshaping revenue models, fostering greater creative freedom, and encouraging other studios to pursue similar independence.

News Source: Destructoid

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