Montreal-based developer Compulsion Games has officially confirmed its return to independent status. The studio, known for the 2025 release South of Midnight, avoided closure during the recent wave of layoffs at Xbox Game Studios by successfully negotiating its departure from the publisher.
With the transition complete, the team is now signaling that it is open for business. In a post on LinkedIn, Compulsion Games announced that it is expanding its opportunities to collaborate with other teams across the games and entertainment industry.
Quick Facts
- Status: Compulsion Games is now an independent developer.
- Recent Work: The studio developed 2025's South of Midnight, which holds an 8/10 rating from IGN and generally favorable reviews on Metacritic.
- Availability: The studio is now accepting partnerships to act as a support studio or co-developer on external projects.
Seeking New Collaborations
Compulsion Games is positioning its award-winning team as a resource for other publishers and developers. "We invite partners to leverage the talent and creativity of the award-winning team behind South of Midnight," the studio stated in its LinkedIn update. "We are excited to support the development of memorable experiences that engage and entertain players around the world."
The move follows a broader restructuring within Xbox Game Studios, which saw the company part ways with several studios, including Double Fine, Undead Labs, Ninja Theory, and Arkane. According to reports, Microsoft is shifting its focus toward its largest franchises, such as The Elder Scrolls, Fallout, and Halo.
A History of Development
Prior to its 2018 acquisition by Xbox, Compulsion Games established itself with titles like Contrast and We Happy Few. Now operating outside the Xbox umbrella, the studio is looking to apply the experience gained from its most recent project to new collaborations. South of Midnight, which launched on April 8, 2025, remains available on PC and Xbox Series S/X.