Compulsion Games, the studio behind South of Midnight, is now independent from Xbox after completing a management buyout, giving the studio a new ownership structure outside Microsoft’s gaming division. CEO Guillaume Provost confirmed that the deal was completed on August 11.
The change was discussed in an exclusive GamesBeat interview. Compulsion Games has not simply changed its publisher listing or internal reporting line; the studio has separated from Xbox altogether. Provost said the buyout also restored the studio’s ownership of its intellectual property.
Before the ownership change, Steam listed Compulsion Games as the publisher for South of Midnight, replacing Xbox Game Studios in that field.
The buyout adds another change to Xbox’s wider studio organization, with Compulsion Games moving forward as an independent developer. The deal covers Contrast, We Happy Few, and South of Midnight, while publishing rights transition back to Compulsion. Provost said purchases of the games will support the studio as that process continues across different platform holders. The financial terms of the buyout were not disclosed.
Compulsion was acquired by Xbox in 2018 and faced an uncertain future during Microsoft’s wider restructuring and job cuts. Provost said he pursued the buyout for the team first. After employees heard the studio could close, some left or began searching for other work, while most of the leadership remained.
“I did this deal for the team first and foremost,” Provost said. “I asked the team: ‘Do you want to stay together?’ The team told me we would rather eat rocks and drink gasoline than be split up.”
Part of the team is now working on a project that was already in development when Microsoft announced plans to close the studio. Compulsion is also speaking with other companies about possible partnerships, after reaching out to studios for development work on projects that need an additional partner.
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