Compulsion Games, the studio behind South of Midnight, has announced it is open to working with and supporting other studios following its independence from Xbox. The developer confirmed it will keep the rights to Contrast, We Happy Few, and South of Midnight as part of its deal to become independent.
"With deep experience in creating acclaimed original IP, we bring our artistry, technical expertise, and collaborative approach to every project," the studio said in a statement posted to its website. "We invite partners to leverage the talent and creativity of the award-winning team behind South of Midnight, a game that was honoured with a BAFTA Award, a Peabody Award, seven Canadian Game Awards, and recognised on multiple 'Best Games of 2025' lists."
The announcement marks a significant shift for the Montreal-based studio, which joined Xbox Game Studios in 2018. Compulsion Games became one of several Xbox-owned studios to be spun out as part of Microsoft's broader restructuring efforts, which have included significant layoffs across its gaming division.
As part of its transition to independence, Compulsion Games has retained the intellectual property rights to its catalog of games. South of Midnight, which launched in 2025, received widespread critical acclaim for its Southern Gothic setting and innovative gameplay mechanics. The game's success appears to have positioned the studio well for its next chapter.
"We're grateful for the years we spent with Xbox, for the support they provided our team, and for the opportunity to bring these games to players around the world," the developer said. "As an independent studio, we're excited to continue building the distinctive games that define Compulsion while taking the next steps in our journey."
The studio emphasized that its immediate priority is supporting its team throughout the transition period. "We are confident in the future of Compulsion Games and look forward to the next chapter where one thing will remain constant: we will create unique games that tell important stories, all with the goal of touching the hearts and minds of our players."
Compulsion Games' move to seek external partnerships follows a broader trend in the gaming industry, where studios are increasingly looking for flexible collaboration models as major publishers restructure their operations.
