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Compulsion Games Breaks Free From Xbox: A New Chapter Begins for South of Midnight Devs

bekir August 21, 2026 3 min read 4 views

In a surprising turn of events that has sent ripples through the gaming world, Compulsion Games, the talented studio behind critically acclaimed titles like We Happy Few and the highly anticipated South of Midnight, has officially severed ties with Microsoft. This move marks a significant shift for both the developer and Xbox, raising questions about the future of Compulsion’s projects and the overall direction of Microsoft’s gaming strategy.

A Studio Reborn: Independence Dawns

The news follows recent speculation surrounding Compulsion’s relationship with Xbox. While Microsoft had previously announced plans to divest from several studios, the confirmation that Compulsion was among them came as a shock to many. However, what makes this situation truly unique is the manner in which it unfolded. According to studio head Guillaume Provost, the management team stepped up to acquire the studio and its staff, with Microsoft transferring the developer’s intellectual property back to them.

This means that when you purchase a copy of South of Midnight on Steam – one of the most talked-about games slated for release in 2025 – your money is now directly supporting Compulsion Games, not Xbox. Provost acknowledged that it will take some time to implement this change across all storefronts.

The driving force behind this bold move was a desire to keep the team together. “I did this deal for the team first and foremost,” Provost explained. “I asked the team, ‘Do you want to stay together?’ The team told me we would rather eat rocks and drink gasoline rather than be split up.” This sentiment highlights the strong sense of camaraderie and shared vision that defines Compulsion Games.

Looking Ahead: New Horizons for South of Midnight

While the specifics of the deal remain confidential, Provost emphasized the importance of securing the studio’s financial future. He is currently engaged in discussions with various potential partners to ensure that Compulsion has the resources it needs to thrive independently. “I just want to make sure that we’re setting the team up for success,” he stated.

Furthermore, Provost revealed that a portion of Compulsion’s talented team is already hard at work on an unannounced project that was in development prior to the studio’s departure from Xbox. This suggests that gamers can look forward to even more exciting titles from Compulsion Games in the years to come.

This strategic move by Compulsion Games represents a new chapter for the studio, one filled with both challenges and opportunities. As Provost concluded, “Compared to all of us losing our jobs on July 6, this is a pretty good deal. I would say the exit was gracious on Microsoft’s part.” The gaming community eagerly awaits to see what Compulsion Games will accomplish now that it has regained its independence.

Source: GameSpot

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