Compulsion Games Secures Independence Following Management Buyout from Xbox

In a significant move that marks the end of its six-year tenure under the Microsoft umbrella, Compulsion Games has officially finalized its management buyout from Xbox.

The separation comes in the wake of a tumultuous period for Microsoft’s gaming division. Last month, Xbox announced plans for what CEO Asha Sharma described as the "most significant restructure in Xbox history," involving widespread job cuts and the closure of several studios. Compulsion, which had been part of Xbox since its acquisition in 2018, was initially slated to be shuttered during this "reset."

However, rather than bowing to the closure, studio leadership successfully negotiated a deal to exit the company and regain their status as an independent developer. As part of the transition, the studio has reclaimed the rights to its entire portfolio of intellectual properties, including Contrast, We Happy Few, and the upcoming South of Midnight.

"We Would Rather Eat Rocks"

The decision to pursue independence was driven by a deep commitment to the studio’s internal culture. In an interview with GamesBeat, Compulsion CEO Guillaume Provost revealed that the buyout was completed on August 11, following intense discussions with his staff.

"I did this deal for the team first and foremost," Provost explained. When faced with the prospect of the studio being shuttered and the team being forced to scatter across the industry, the employees were resolute. "I asked the team: ‘Do you want to stay together?’ The team told me we would rather eat rocks and drink gasoline than be split up."

While Provost noted that the uncertainty of the situation led some staff members to seek employment elsewhere, a core group of leadership and developers remains intact, committed to the studio’s future.

Moving Forward

With the buyout now official, the transition of publishing rights back to Compulsion is underway. Provost emphasized that this change directly impacts the future of the studio’s projects: "Buying the games is supporting the studio as a result of that change."

The team is currently continuing development on a project that was already in progress before the restructuring announcement. Furthermore, the studio is actively seeking new collaborative opportunities. Last month, Compulsion issued a call to the industry via LinkedIn, inviting other studios to explore potential partnerships for collaborative work.

As the dust settles, Compulsion Games stands as a rare example of a developer successfully navigating a corporate "reset" to reclaim its creative autonomy. For fans of the studio’s unique narrative titles, the independence of the team suggests that the future of projects like South of Midnight will remain firmly in the hands of its creators.