Compulsion Games Regains Independence from Xbox

Compulsion Games, the Montreal-based developer known for South of Midnight, has officially returned to independence.

On August 11, 2026, the studio completed a management buyout to spin out from Xbox.

This move followed a significant organizational restructure at Microsoft, which saw the divestment of several studios.

CEO Guillaume Provost described the separation as a "gracious" exit, noting that the team was determined to stay together rather than face closure.

By regaining independence, the studio now holds full ownership of its intellectual property, including Contrast, We Happy Few, and South of Midnight.

While the company is currently operating in a lean, thrifty environment, leadership is focused on achieving long-term sustainability.