Compulsion Games, the Montreal studio behind We Happy Few and this year’s Southern gothic adventure South of Midnight, has officially completed its split from Microsoft. Following a management buyout, the developer is once again fully independent — and, most importantly, it now owns the rights to every single one of its original games.
A Clean Break from Xbox and Microsoft
The buyout means Compulsion’s own leadership team now controls the studio outright, ending a relationship with Microsoft that began in June 2018. Back then, Xbox was on a high-profile acquisition spree, snapping up Compulsion alongside Ninja Theory, Playground Games, and Undead Labs to bolster its first-party lineup.
Seven years later, the landscape looks very different. Compulsion has joined the small but growing list of studios reversing course and going independent, taking full ownership of its intellectual property — including Contrast, We Happy Few, and South of Midnight — with it.
What This Means for South of Midnight and We Happy Few
For players, the immediate changes are more symbolic than practical: the games remain available on their existing platforms. But as Rock Paper Shotgun points out, the separation means you can now purchase South of Midnight without touching Microsoft’s ecosystem at all — something the site also notes matters to buyers participating in the BDS boycott of Microsoft.
How Good Is South of Midnight, Anyway?
If you missed it, South of Midnight is a folkloric action-adventure set in the American Deep South, following a huntress named Hazel who mends magical “weavings” in a world of haints and tall tales. Rock Paper Shotgun’s late, beloved reviewer Brendy called it “a beautiful folkloric tale,” even if he found its action design “plain and unambitious.” Flawed, yes — but distinctive, atmospheric, and absolutely worth a playthrough if you enjoy story-driven adventures.
“We’re Going to Take Things Slow” — A New Game Is in Development
Alongside the buyout news, Compulsion confirmed that a new, unannounced project is already in the works. The studio says it plans to “take things slow,” which suggests a more deliberate, craftsman-like development approach now that it no longer answers to a corporate parent. For a mid-sized team that has always punched above its weight in art direction and world-building, that creative freedom could be exactly what its next title needs.
The Bigger Picture: Xbox’s Studio Strategy Keeps Shifting
Compulsion’s exit doesn’t exist in a vacuum. Since the colossal Activision Blizzard merger, Microsoft has dramatically restructured its gaming division — with mass layoffs, the closures of studios like Arkane Austin and Alpha Dog Games, and the surprising sale of Tango Gameworks to Krafton. Xbox has also embraced publishing its titles on rival platforms, including PS5 and Switch.
In that context, a friendly management buyout looks like a win-win: Microsoft trims its portfolio, while Compulsion regains the autonomy and IP ownership that indie studios dream of. Expect more deals like this as the industry continues to reorganize.
Where to Get Compulsion Games for Less
Want to catch up on South of Midnight or revisit the dystopian quirk of We Happy Few? You can grab Steam wallet codes and Xbox gift cards at TURGAME.com at competitive prices — a quick and easy way to top up your balance and support the newly independent studio’s catalog while you’re at it.
Source: Rock Paper Shotgun
Source: Rock Paper Shotgun