“South of Midnight Developers Regain Rights to All Their Games After Departing Xbox and Announce New Project”

"South of Midnight Developers Regain Rights to All Their Games After Departing Xbox and Announce New Project"

**Compulsion Games Breaks Free from Microsoft: A New Chapter Ahead**

In a significant turn of events, Compulsion Games, the studio known for titles like *We Happy Few* and the recently announced *South of Midnight*, has successfully completed a management buyout, regaining full ownership of its original intellectual properties. This move marks the studio’s official separation from Microsoft and Xbox, opening new avenues for its future endeavors.

### Full Ownership and Independence

Compulsion Games has confirmed through its CEO, Guillaume Provost, that they are reclaiming all publishing rights to their games, although the transfer process for platforms outside of Steam, such as Nintendo Switch and PlayStation, will take additional time. This management buyout not only restores the studio’s independence but also allows fans to support Compulsion directly by purchasing *South of Midnight* on Steam, with all proceeds (minus Valve’s cut) going straight to the studio.

### Context of the Breakup

The announcement comes on the heels of Microsoft’s major layoffs earlier in July, where approximately 3,200 employees were let go, and several prominent studios, including Compulsion, were either sold or spun out. Other studios such as Double Fine, known for *Psychonauts*, have also regained their independence, while the futures of Ninja Theory and Undead Labs remain uncertain.

Provost highlighted the gravity of the situation by referencing the layoffs, asserting that the outcome of the buyout was a “pretty good deal” compared to the alternative. Microsoft has provided some financial support, referred to as “runway,” to help guide Compulsion and Double Fine through their transition to independent operations.

### Team At the Heart of the Transition

Provost emphasized that the buyout was primarily for the benefit of his team, many of whom faced uncertainty when rumors of potential studio closure circulated. He recounted that the team expressed a strong desire to stay together, underscoring their commitment to the studio’s collective vision and future.

With some members leaving in search of other opportunities, Provost indicated that most of the leadership team has remained intact, ready to navigate the new challenges ahead. The studio is also continuing work on an unannounced project that was in development during their time with Microsoft.

### A Leaner, Thriftier Future

As Compulsion embarks on this fresh start, Provost acknowledges the financial constraints they now face without Microsoft’s extensive resources. He is keen on ensuring that the studio is set up for success and is taking a patient approach to growth, meeting with potential collaborators and carefully considering their next steps.

Drawing from their past experiences, Compulsion was founded during a global recession in 2009, and Provost is optimistic that this historical context gives the studio a resilient foundation to build upon. He believes that the current economic landscape will lead to a “thrifty and lean” operational model that will benefit the studio in the long run.

### Looking Forward

As Compulsion Games begins this new chapter, the gaming community watches with anticipation. Players are eager to see how *South of Midnight*, described as a “beautiful folkloric tale” and a contrasting experience to their previous work *We Happy Few*, will be received. The cultural representations within *South of Midnight* add an intriguing layer, promising a rich narrative experience.

While Compulsion takes steps to solidify its independence, other former Microsoft studios like Double Fine and Arkane are also navigating their futures. The evolving landscape of the gaming industry will surely be influenced by these shifts, and Compulsion Games stands poised to carve out its unique path ahead.