Days after leaving Xbox, South of Midnight developer Compulsion Games broadcasts that it’s looking for work

Compulsion Games, the developer behind the acclaimed South of Midnight and We Happy Few, has announced it is seeking new collaboration opportunities following its recent independence from Xbox. The studio became independent as part of Xbox’s latest wave of layoffs and restructuring.

In an open letter shared across social media, Compulsion Games expressed its desire to work with studios and entertainment companies, inviting partners to leverage the team’s “talent and creativity.” The announcement suggests the studio is pursuing co-development and support roles on other projects while working toward its own future releases—a common strategy for newly independent studios facing immediate financial pressures.

South of Midnight, Compulsion’s most recent title, has achieved significant critical recognition, including a BAFTA Award, a Peabody Award, seven Canadian Game Awards, and placement on multiple Best Games of 2025 lists. The studio emphasized its experience in creating acclaimed original intellectual property, technical expertise, and collaborative approach as assets for potential partners.

The move highlights the precarious position many studios face after layoffs and departures from major publishers, requiring them to secure external work to maintain operations while developing their next projects.

Days after leaving Xbox, South of Midnight developer Compulsion Games broadcasts that it’s looking for work

Sources