Compulsion Games Seeks New Partnerships After Xbox Restructuring

The studio behind 'South of Midnight' is actively pursuing collaborations following its spin-off from Xbox.

Jul 14, 2026
Industry & Business
Compulsion Games Seeks New Partnerships After Xbox Restructuring

Compulsion Games, the studio known for titles such as We Happy Few and the BAFTA award-winning South of Midnight, has announced it is seeking new development partnerships. The studio posted on LinkedIn that it is looking to collaborate with other game studios on various development projects, inviting potential partners to “leverage the talent and creativity of the award-winning team behind South of Midnight.”

This move comes after Xbox recently spun off Compulsion Games and Double Fine, a restructuring that also saw Ninja Theory and Undead Labs placed under new, yet-to-be-announced ownership. While Compulsion Games was spared the fate of closure, its transition to an independent studio presents new challenges. The current market for game development funding is described as scarce, with major publishers often prioritizing investment in generative AI technology or stock buy-backs to increase shareholder value. When funding is available, it is frequently directed towards projects that are nearing completion, with deal structures that ensure publishers recoup their investment before developers see any profit.

Despite these industry headwinds, Compulsion Games, with its proven track record, is positioning itself to navigate this evolving landscape. The studio expressed its eagerness to continue supporting the development of memorable experiences through these new collaborations, aiming to remain a viable and creative force in the game industry.

Sources