Compulsion Games, the Canadian studio known for titles such as "We Happy Few" and the upcoming "South of Midnight," has completed its separation from Microsoft.
Guillaume Provost, head of Compulsion Games, confirmed the studio's transition to independent status, a move foreshadowed by the appearance of "South of Midnight's" Steam page listing Compulsion as both developer and publisher. The official confirmation comes after Microsoft had previously indicated the divestment of Compulsion as one of five Xbox studios.
Under the terms of the agreement, Compulsion's management team has acquired the studio and its staff. Crucially, Microsoft has transferred the intellectual property rights for the developer's games back to Compulsion. This means that revenue generated from sales of "South of Midnight" on platforms like Steam will now directly benefit Compulsion, rather than Microsoft. Provost noted that the full implementation of these changes across all storefronts will take some time.
Provost emphasized that the decision to pursue independence was driven by a desire to keep the team together. He stated that the staff overwhelmingly preferred to remain a cohesive unit, even under challenging circumstances. While some Compulsion developers departed after warnings about potential studio closure, Provost confirmed that the majority of senior staff elected to stay.
A portion of Compulsion's team is currently engaged in developing an unannounced project that was already underway prior to the studio's split from Xbox. As Microsoft was the primary financial supporter for Compulsion's endeavors, Provost is actively exploring new funding avenues with various potential partners to ensure the studio's future financial stability.
This separation is part of a broader restructuring within Xbox, which has seen other studios also undergo changes. Double Fine has regained its independence, while Ninja Theory and Undead Labs have been acquired by undisclosed entities. Arkane Studios is currently undergoing a consultation period related to French labor laws. These organizational shifts coincide with a wider reduction in workforce at Xbox, with significant layoffs impacting numerous employees.