South of Midnight Developer Compulsion Games Completes Management Buyout and Regains Intellectual Property Rights

Compulsion Games has announced that it is fully separated from Microsoft and Xbox after completing a management buyout. As a result of the arrangement, the studio once again owns the rights to all its original intellectual properties. This includes the action-adventure game South of Midnight, allowing purchases of the Steam version to direct revenue straight to Compulsion after Valve's cut.

Speaking with Gamesbeat, Compulsion CEO Guillaume Provost confirmed that the studio is getting all of its publishing rights back, though he noted that transferring ownership for games on platforms outside of Steam—such as Switch and PlayStation—will take additional time. Provost declined to share exact terms of the buyout beyond remarking that it was a preferable outcome compared to potential job losses, describing the exit as gracious on Microsoft's part. According to Provost, Microsoft also provided financial assistance, referred to as runway, to support Compulsion and Double Fine in their continued independence.

The separation follows a broader restructuring period announced in July that involved thousands of layoffs and changes for several prominent studios. Alongside Compulsion, developers such as Double Fine have regained independence, while Ninja Theory and Undead Labs were acquired by unknown parties and Arkane terms continued to be negotiated under French labor law.

Addressing the composition of the studio moving forward, Provost stated that most team leaders stayed on following internal discussions, though some staff departed or sought other roles when closure was initially a possibility. The studio is continuing work on an unannounced project that was previously in development for Microsoft. Provost indicated that Compulsion plans to take a measured approach to its future operations, meeting with various companies to discuss potential collaborations and opportunities while relying on the thrifty operational mindset established during the studio's founding in 2009.