Compulsion Games, the studio known for titles such as We Happy Few and the upcoming South of Midnight, has officially concluded its partnership with Microsoft and Xbox. The developer announced it has completed a management buyout, which returns the intellectual property rights for all its games to the studio.
This separation means that purchases of South of Midnight, particularly on Steam, will now direct revenue directly to Compulsion Games after Valve's platform cut. This development occurs amidst a period of significant studio restructuring for Microsoft, which included layoffs and the divestiture or spin-off of several studios earlier in the year. Other studios like Double Fine have also reacquired their independence, while Ninja Theory, Undead Labs, and Arkane are navigating their own transitions.
Guillaume Provost, CEO of Compulsion Games, confirmed the return of publishing rights, noting that the transfer of ownership on platforms beyond Steam, such as PlayStation and Switch, will require additional time. Provost described the exit terms as gracious and acknowledged Microsoft's provision of financial assistance, termed "runway," to aid Compulsion and Double Fine in their continued independent operations.
Provost emphasized that the buyout was primarily motivated by a desire to keep the team together, stating the studio's commitment to preserving its workforce. While some employees departed or sought other opportunities when the possibility of studio closure was raised, key team leaders have reportedly remained.
Compulsion Games is currently engaged in discussions with various companies regarding future opportunities, which may include collaborations on different projects. Concurrently, the studio continues development on an unannounced game that was initially being created for Microsoft. Provost indicated a deliberate, unhurried approach to planning future endeavors, stating the studio intends to "take things slow" and carefully evaluate its options to ensure the team's success.
Reflecting on the studio's history, Provost drew parallels to Compulsion's founding in 2009 during a global recession, suggesting that challenging economic environments foster resilient and efficient company structures. The studio aims to build upon this foundation as it embarks on its new independent phase.