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We Happy Few

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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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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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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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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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Games Industry

Compulsion Games seeks new partnerships following spin-out from from Xbox

Compulsion Games has announced its return to independent development after being spun out from Xbox. The studio, known for South of Midnight, is now seeking new partnerships to leverage its team's talent and creativity. Compulsion Games retains the rights to its previous titles, including Contrast, We Happy Few, and South of Midnight.

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Eurogamer

Days after leaving Xbox, South of Midnight developer Compulsion Games broadcasts that it's looking for work

Following its separation from Microsoft's Xbox division due to layoffs, Compulsion Games is actively seeking new collaboration opportunities with other studios. The developer of South of Midnight and We Happy Few aims to leverage its award-winning talent to support external projects while retaining ownership of its existing IPs.

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Rock Paper Shotgun

Following Xbox split, South of Midnight devs Compulsion are looking for work as a co-development or support studio

Following layoffs from Xbox, Compulsion Games, the studio behind South of Midnight and We Happy Few, is now operating as an independent developer. The company is actively seeking co-development or support roles with other studios to secure funding and leverage its team's talent while working on its next original game.

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Retro Gamer

Summary: what's happening at Xbox?

Xbox announced a major restructuring involving 3,200 job cuts, with 1,600 immediate layoffs, primarily affecting ZeniMax studios like Bethesda and id Software. Several studios, including Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, are being sold off or spun out as independent entities. This move aims to refocus on high-earning franchises and improve profit margins, impacting the development of upcoming titles like The Elder Scrolls 6 and potentially State of Decay 3.

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Eurogamer

Xbox needs to make a choice, says former PlayStation leader Shawn Layden: be a publisher or a platform, but you can't be both

Former PlayStation leader Shawn Layden argues that Xbox must choose between being a major game publisher or a platform holder, stating it cannot effectively be both. He highlights the need for exclusive content to support a platform, contrasting it with the multiplatform approach required for a top publisher, a dilemma exacerbated by recent Xbox layoffs and strategic shifts.

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PC GamesN

Xbox setting Compulsion and Double Fine free is the only good thing to come out of Microsoft's layoffs

Microsoft's recent layoffs, affecting thousands of employees, have led to Xbox allowing Compulsion Games and Double Fine Productions to become independent. While the mass job losses are devastating, this move is seen as a positive step for fostering innovation in the indie game space, freeing these studios from the constraints of triple-A development.

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Gaming Bolt

The Gaming Industry Is Eating Itself Alive

Xbox is undergoing a massive restructuring, including 3,200 layoffs, impacting numerous studios and divisions like Activision, Bethesda, and Blizzard. While some studios regain independence and first-party projects remain safe for now, the article criticizes Xbox's overall strategy, citing Game Pass's performance and declining hardware revenue. The piece also touches on PlayStation's similar issues with digital ownership and preservation, painting a bleak picture for the future of gaming costs and ownership.

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Games Industry

Compulsion Games and Double Fine confirm "Independence Day" from Xbox

Compulsion Games and Double Fine have confirmed their return to independent management following significant layoffs and studio divestitures at Xbox. Compulsion Games will retain the rights to its titles, including We Happy Few and South of Midnight, while Double Fine also regains ownership of its games. This news comes as part of broader restructuring within Xbox's gaming division, affecting multiple studios.

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Eurogamer

Independent again: Double Fine and Compulsion react to leaving Xbox and taking all their games with them

Double Fine Productions and Compulsion Games are returning to independent development after being let go by Microsoft as part of Xbox restructuring. Both studios will retain ownership of their games, including Psychonauts 2, Keeper, and South of Midnight. This move follows a period of significant layoffs and strategic shifts within Xbox.

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PC GamesN

Microsoft needs to "reset Xbox," says Asha Sharma, as the company lays off 3,200 employees

Microsoft's Xbox division is undergoing significant restructuring, with approximately 3,200 employees being laid off throughout the 2027 fiscal year, including 1,600 immediately. CEO Asha Sharma stated the business is not healthy and operating at lower margins than comparable companies. Several studios, including Compulsion Games and Double Fine Productions, will transition to independent management, while Ninja Theory and Undead Labs are set to be acquired by new owners.

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PC Gamer

Compulsion Games is returning to independent management amid sweeping Xbox reorganization: 'Our immediate priority…

Compulsion Games is returning to independent management following a significant reorganization at Xbox and Microsoft, which includes widespread layoffs. The studio will retain ownership of its intellectual property, including South of Midnight, We Happy Few, and Contrast. This move comes after reports suggested the studio was at risk of closure.

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The Sixth Axis

Microsoft confirms 3200 layoffs and four studio departures

Microsoft has confirmed significant layoffs affecting approximately 3,200 employees across its Xbox business, including 1,600 on the day of the announcement. Four studios, Compulsion Games, Double Fine, Ninja Theory, and Undead Labs, will either become independent or find new ownership, while Arkane Studios faces strategic review. Xbox CEO Asha Sharma cited slower-than-expected growth in Game Pass, multi-platform strategies, and content portfolio as reasons for the restructuring, which will also involve reducing management layers.

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Gamespot

Xbox Layoffs, Studio Closures, And Spin-Offs: Everything Announced Today

Microsoft has announced significant layoffs and studio restructuring within its Xbox division, impacting 3,200 employees over the current financial year, with 1,600 layoffs starting immediately. Several studios, including Compulsion Games and Double Fine Productions, are transitioning back to independent management, while others like Ninja Theory and Undead Labs are seeking new ownership. The company cited financial underperformance and a need to reset its strategy, focusing investment on higher-priority games and core IPs.

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