Compulsion Games becomes publisher of South of Midnight on Steam, suggesting departure from Xbox amid major restructuring is now complete
Compulsion Games has become the publisher of its action-adventure game South of Midnight on Steam, marking the completion of the studio’s separation from Microsoft’s Xbox division. The studio update follows significant restructuring across Xbox that has resulted in multiple acclaimed developers regaining independence.
As part of the wider Xbox restructuring, Compulsion Games and indie studio Double Fine successfully detached from the Xbox division. Additionally, Ninja Theory and Undead Labs also exited Xbox under still-undisclosed new ownership arrangements. Arkane Lyon was reportedly in talks to exit the division, though the current status of those negotiations remains unclear.
The relisting of South of Midnight with Compulsion Games as publisher on Steam indicates that the administrative and business separation from Microsoft is now finalized. The studio can now independently self-publish and control distribution of its game.
This restructuring represents a significant strategic shift for Xbox, with the company stepping back from direct studio ownership while multiple acclaimed developers regain autonomy over their projects and publishing rights. The moves grant these studios greater creative control and independence in how they develop and distribute their games.