Compulsion Games has successfully completed a management buyout, regaining ownership of its intellectual property from Microsoft. The studio, known for titles such as "We Happy Few" and the upcoming "South of Midnight," was previously under the Xbox Game Studios banner.
Following recent rumors of closure amid broader layoffs at Microsoft, Compulsion announced its departure from the company. CEO Guillaume Provost confirmed that the management buyout is finalized and that the studio now owns its original IPs. This move means Microsoft will no longer receive a share of revenue from games like "South of Midnight," provided they are not purchased through the Xbox digital storefront. Provost also stated that the management team has acquired the studio and its staff.
"South of Midnight" was recently highlighted as a notable title for 2025, with its narrative described as "a Deep South delight drenched in superstition and pain." While some advocates had already considered the game an exception to BDS boycott efforts due to its themes of "black liberation" and its indie-like production scale, the studio's newfound independence offers a more direct financial benefit to Compulsion Games for each sale.
The successful separation from a major publisher like Microsoft marks a significant achievement for Compulsion Games, especially considering the recent turmoil within Xbox that had previously led some Compulsion developers to seek new employment opportunities. The studio's previous titles include "We Happy Few" and "Contrast" from 2013.