Compulsion Games Completes Management Buyout, Regains IP Rights

Compulsion Games, the developer behind We Happy Few and South of Midnight, has completed a management buyout and officially separated from Microsoft and Xbox. Through this agreement, the studio has regained full ownership of all its original intellectual properties.

Quick Facts

• Compulsion Games is fully independent again following a management buyout from Microsoft.
• The studio has regained publishing and ownership rights for its original intellectual properties, including South of Midnight.
• Microsoft provided financial runway to assist Compulsion and Double Fine in their transition back to independence.
• Studio leadership is currently taking time to meet with other companies and evaluate future collaboration opportunities.

What Independence Means for South of Midnight Buyers

For players, this structural change alters how purchases function on PC. When buying the Steam version of South of Midnight, all proceeds—after Valve's standard revenue cut—go directly to Compulsion Games rather than Microsoft. CEO Guillaume Provost confirmed that the studio has reclaimed all of its publishing rights, though transferring game ownership on platforms beyond Steam, such as the Nintendo Switch and PlayStation, will require additional time.

Studio Future and Ongoing Projects

The management buyout follows industry-wide restructuring initiated by Microsoft in July, which involved thousands of layoffs and the spin-out or sale of several prominent studios, including Double Fine, Ninja Theory, and Undead Labs. Provost noted that Microsoft provided financial runway to support Compulsion and Double Fine during the shift.

While some staff members left when initial studio closure was considered, most team leaders remain with the company. The core development team is continuing work on an unannounced project that was initially being created for Microsoft prior to the corporate restructuring. Provost stated that the studio plans to take things slow and meet with various industry partners to establish stable foundations for future projects.