Compulsion Games, the studio behind South of Midnight and We Happy Few, has officially separated from Microsoft. CEO Guillaume Provost confirmed that the studio has completed a management buyout, regaining its independence and securing ownership of its intellectual property.
Quick Facts
- Status: Compulsion Games is now an independent studio.
- IP Ownership: The studio retains full ownership of its game library, including South of Midnight.
- Sales Revenue: Proceeds from the sale of Compulsion Games titles now go directly to the studio.
- Platform Availability: While IP ownership has transferred on Steam, updates for console storefronts like Xbox, PlayStation, and Switch are currently in progress.
Impact on Players and Development
For players, the most immediate change concerns the destination of revenue. Purchases of South of Midnight, which was released in April 2025, will now directly support Compulsion Games rather than the studio's former corporate owners. This transition follows Microsoft's announcement in July 2026 regarding the divestment of several studios.
According to Provost, the decision to pursue independence was driven by a desire to keep the development team together. While the transition of IP ownership is already reflected on Steam, the studio is currently working to finalize these updates across console storefronts. Management is also actively exploring avenues for long-term funding to ensure the studio's stability moving forward.
Despite the restructuring, the development team remains operational and focused on their current projects. Provost noted that the majority of staff members chose to stay with the studio through the transition period.