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South of Midnight

News, coverage and analysis tracking South of Midnight across the outlets.

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Retro Gamer

Xbox CEO Asha Sharma is "not going to shoot my dog," says now-independent Double Fine boss Tim Schafer, who initially opposed Microsoft ownership because "you guys love closing studios"

Double Fine has regained its independence from Microsoft, with founder Tim Schafer expressing relief that new Xbox CEO Asha Sharma is not planning to close studios. Schafer initially opposed the acquisition due to Microsoft's history of studio closures, but found the experience under Phil Spencer and Matt Booty to be largely positive until recent leadership changes. The studio announced its new game, Thank You Bus Driver, shortly after regaining independence, though it also had to lay off 23 employees.

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PC Gamer

Compulsion Games' buyout is complete, so now Microsoft won't get a cut if you buy South of Midnight

Compulsion Games has completed a management buyout, regaining ownership of its intellectual property from Microsoft's Xbox Game Studios. This separation allows Compulsion to retain a larger share of revenue from games like South of Midnight, which received an 83% review score. The studio, also known for We Happy Few and Contrast, is now independent after rumors of closure following recent layoffs.

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Rock Paper Shotgun

"Buying any of our games helps support the studio": Psychonauts studio Double Fine are the latest former Xbox-owned studio to get the rights to their games back

Double Fine Productions, the studio behind Psychonauts, has regained the publishing rights to its games from Microsoft. CEO Tim Schafer confirmed the transfer, stating that sales of their games now directly support the studio. The studio also announced the return of their Amnesia Fortnight game jam, with a Kickstarter launching August 31st to fund the initiative.

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PC Gamer

The newly independent Psychonauts dev now earns all the revenue when you buy games it made under Xbox: 'Buying any…

Double Fine has become an independent studio again after leaving Microsoft's Xbox Game Studios, regaining full publishing rights and revenue for its past games. CEO Tim Schafer confirmed the transition, noting that sales now directly support the studio as it pitches new projects. The studio is also launching a Kickstarter for its Amnesia Fortnight game jam and teased updates for its game Kiln.

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Shack News

Weekend Console Download Deals for Aug. 21: Catching up with Black Myth: Wukong

This weekend's console deals include significant discounts on Black Myth: Wukong for PlayStation and Xbox. Nintendo Switch owners can find deals on Sega titles, Dispatch, and BALL x PIT. Numerous other games across various genres are also on sale for PlayStation and Xbox platforms.

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Gamespot

Compulsion Games Is Now Officially An Ex-Xbox Studio

Compulsion Games has officially separated from Microsoft and is no longer an Xbox studio. The studio's management team acquired the company, and Microsoft transferred intellectual property rights, including for 'South of Midnight,' back to Compulsion. This move allows Compulsion to retain its staff and pursue its future projects independently, with plans to secure new financial backing.

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FZ.se

Compulsion Games är nu återigen självständiga

Compulsion Games, the studio behind We Happy Few and South of Midnight, has officially become independent after being acquired by Xbox. The studio has bought itself back, regaining full control over its intellectual property and will now self-publish its titles. CEO Guillaume Provost confirmed the team's desire to remain together and continue development on a new title.

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Games Industry

IGN Entertainment brings Women In Gaming networking event to Gamescom

IGN Entertainment is hosting a Women in Gaming networking breakfast at Gamescom, supported by GamesIndustry.biz, to foster industry connections. Separately, Compulsion Games has become independent from Xbox, regaining ownership of its intellectual properties including Contrast, We Happy Few, and South of Midnight, with CEO Guillaume Provost prioritizing the team's unity and future profitability.

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Games Industry

Compulsion Games officially separates from Xbox – "The team told me we would rather eat rocks and drink gasoline than be split up"

Compulsion Games has officially become independent from Xbox, with CEO Guillaume Provost leading a management buyout that returns ownership of the studio and its intellectual properties to the team. Provost emphasized the decision was made to keep the team together, especially after recent layoffs at Xbox. The studio, known for games like We Happy Few, is now focused on securing stable funding and self-sustainability while exploring new partnerships.

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Gamedeveloper.com

EA staff worries over Saudi buyout, Grand Theft Auto 6 leaks, and Peak's last major update - Patch Notes #66

This article covers several gaming industry developments, including employee concerns at Electronic Arts following a Saudi buyout, ongoing leaks of Grand Theft Auto 6, and the final update for the game Peak. It also touches on FromSoftware's new game The Duskbloods, Compulsion Games' management buyout from Xbox, PlayStation's struggles with live-service games, and the use of AI in game development.

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Rock Paper Shotgun

“We’re going to take things slow": South of Midnight devs now own the rights to all their games again, after quitting Xbox, and are working on a new game

Compulsion Games, the studio behind South of Midnight, has completed a management buyout and regained the publishing rights to all its original intellectual properties after parting ways with Microsoft and Xbox. CEO Guillaume Provost stated the team prioritized staying together, and while the transition will take time for platforms beyond Steam, Microsoft provided financial assistance for their independent careers. The studio is now working on an unannounced project and plans to proceed cautiously.

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Shack News

Evening Reading - August 14, 2026

This week's gaming news roundup includes updates on Total War: Warhammer 3, a review of Madden NFL 27, and the opening of 2K's Small Axe Studios. Compulsion Games has removed Xbox as the publisher for South of Midnight on Steam, while Kingdom Hearts 4 is slated for a late 2027 release with an animated series coming to Disney+. The article also highlights new features for The Elder Scrolls 4: Oblivion Remastered on Nintendo Switch and mentions upcoming content for Modern Warfare 4.

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Shack News

Compulsion Games removes Xbox as publisher of South of Midnight on Steam

Compulsion Games has removed Xbox as the publisher of its upcoming game South of Midnight on Steam, listing itself as the publisher as of August 11, 2026. This change follows Xbox's recent mass layoffs, which had previously put Compulsion Games' future in question. The studio is now independent and retains control of its intellectual property.

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Eurogamer

Compulsion Games becomes publisher of South of Midnight on Steam, suggesting departure from Xbox amid major restructuring is now complete

Compulsion Games is now listed as the publisher of South of Midnight on Steam, indicating its complete separation from Xbox following recent restructuring. The studio, which also regained rights to its previous titles Contrast and We Happy Few, is now operating as an independent entity. South of Midnight, released in spring 2025, received praise for its visuals and music integration but was criticized for shallow gameplay.

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IGN

Xbox's Separation from Compulsion Games Seems Complete as Studio Is Listed as the Publisher of South of Midnight on Steam

Xbox's relationship with Compulsion Games appears to have concluded, as the developer is now listed as the publisher of its upcoming game South of Midnight on Steam, rather than Xbox Game Studios. This change follows recent layoffs and a broader restructuring within Xbox's gaming division.

Gamespot

Ignore Your Growing Backlog–It’s Time To Play South Of Midnight On Steam

South of Midnight is now self-published by Compulsion Games on Steam, with Xbox no longer listed as the publisher. This change suggests that future sales will directly benefit Compulsion Games following recent layoffs and restructuring. The article praises the game's atmosphere, sound design, and visuals, calling it an affecting experience despite its familiar combat and platforming mechanics.

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Checkpoint Gaming

Double Fine Productions suffers layoffs weeks after going independent

Double Fine Productions has laid off 23 employees, nearly 25% of its workforce, just weeks after becoming an independent studio following its separation from Xbox. The studio stated the layoffs were necessary for its survival and to adjust to its new size as an independent entity. This follows Xbox's broader restructuring efforts which have also impacted other studios.

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Gaming Bolt

Double Fine Announces Layoffs For 23 Employees Following Xbox Split

Double Fine Productions, developer of Psychonauts, has laid off 23 employees following its separation from Xbox. Studio founder Tim Schafer stated the move was necessary for the studio's sustainability as an independent company. Xbox confirmed the return of intellectual property and runway for future games to Double Fine and other divested studios like Compulsion Games, Ninja Theory, and Undead Labs.

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Shack News

Double Fine Productions confirms layoffs after Xbox divestment

Double Fine Productions has confirmed layoffs affecting 23 employees as the studio seeks to ensure its future following its divestment from Xbox. Studio head Tim Schafer announced the staff reductions in a social media message. The studio recently released the party brawler Kiln.

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Games Industry

Games for Change Festival to expand and move to new cities

The Games for Change Festival will expand its reach by hosting events in new cities during odd-numbered years, starting with Arizona in 2027 in partnership with Arizona State University. The festival will return to New York in even-numbered years and will resume a three-day schedule due to increased attendance. This expansion aims to include more creators, developers, educators, and researchers in the G4C community.

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