Compulsion Games Completes Management Buyout and Separates From Xbox

Montreal-based video game developer Compulsion Games has officially separated from Xbox following a management buyout. The studio, known for titles such as South of Midnight, We Happy Few, and Contrast, originally announced in July 2026 that it would split from Xbox in the wake of a major corporate restructuring.

GamesBeat first reported the separation, which was subsequently confirmed by Compulsion Games CEO Guillaume Provost. According to Provost, the studio is now completely independent and has successfully regained ownership of its original intellectual property. Furthermore, publishing rights are actively transferring back to Compulsion Games, though Provost noted there is a transition period involved with different platform holders while that process is completed. He also emphasized that purchasing the studio's games directly supports the team during this transition.

Discussing the motivation behind the transaction, Provost explained that the decision was driven primarily by a commitment to the development staff. After consulting with employees and asking if they wished to stay together, the team overwhelmingly favored independence over dissolution. The management buyout prevents the studio from being split up following Xbox's broader organizational restructuring, which affected 1,600 jobs immediately and is projected to see an additional 1,600 jobs lost by the end of the year.

While specific financial terms of the management buyout have not been publicly disclosed, Compulsion Games moves forward as an independent entity retaining full control over its creative works and upcoming projects.