Compulsion Games Completes Management Buyout and Separates From Xbox

Montreal-based game studio Compulsion Games has officially completed a management buyout, separating itself from Xbox and Microsoft. CEO Guillaume Provost confirmed the completion of the deal in an interview, noting that the studio has successfully regained ownership of its original intellectual property and publishing rights. Speculation regarding the shift began when ownership of the Steam version of South of Midnight transferred from Microsoft to Compulsion Games.

The separation follows Microsoft's announcement regarding studio divestments and layoffs. Provost noted that the alternative to the buyout would have been shutting down the studio entirely, remarking that the team preferred independence over closure. Under the terms of the arrangement, Compulsion Games has bought back its IP and secured its studio and staff, meaning future purchases of the studio's titles will directly support the company rather than Microsoft. As part of the transition, the studio must assume ownership of its games across multiple digital storefronts, including the Switch, PlayStation, and Xbox stores.

Compulsion Games' catalog spans several notable titles, including the puzzle-platformer Contrast (2013), the survival horror game We Happy Few (2018), and the third-person fantasy action adventure South of Midnight (2025). Provost did not disclose the financial terms of the deal but emphasized that the separation allows the team to remain together and pursue independent operations. The studio is currently taking things step by step as it explores permanent funding alternatives, permanent partnerships, and ways to build a self-sustaining business model moving forward.