Former Xbox Studio Compulsion Games Says It’s Open to Collaborations

Compulsion Games, the Montreal-based developer behind the award-winning action-adventure game South of Midnight, has announced it is seeking collaboration opportunities following its recent independence from Xbox. The studio became independent during Microsoft’s latest round of restructuring, which saw 3,200 layoffs across Xbox—including 1,600 immediate terminations—and the divestment of four studios from the company.

Just one week after regaining independence, Compulsion Games posted on LinkedIn that it is “expanding opportunities to collaborate with studios across the games and entertainment industry.” The announcement positions the studio as open to working as a support studio and co-developer on other projects, leveraging what it describes as its “deep experience in creating acclaimed original IP.”

Compulsion highlighted its credentials by emphasizing South of Midnight’s recognition, including a BAFTA Award, a Peabody Award, seven Canadian Game Awards, and multiple placements on “Best Games of 2025” lists. The studio also cited its previous work on We Happy Few as evidence of its creative capabilities.

The move reflects how independent developers and recently divested studios are navigating the current industry landscape following the wave of Xbox-led consolidation and restructuring. By actively seeking partnerships, Compulsion Games aims to secure ongoing work and remain viable as an independent operation rather than face closure.

Former Xbox Studio Compulsion Games Says It’s Open to Collaborations

Sources