Compulsion Games Has Now Officially Separated From Xbox

Compulsion Games, the Montreal-based developer, has successfully completed its management buyout and is now officially independent from Xbox. The studio, which had been part of Xbox Game Studios, announced its intention to split in July 2026 following a major restructuring at Microsoft’s gaming division.

CEO Guillaume Provost confirmed the completion of the separation, stating that Compulsion Games has regained full ownership of its original intellectual property. The studio’s catalog includes titles such as South of Midnight, We Happy Few, and Contrast. According to Provost, publishing rights for these games are transitioning back to Compulsion Games, though the process involves a transition period coordinated with various platform holders.

The move marks a significant shift for the independent studio, which now has complete creative and business control over its properties. The separation allows Compulsion Games to operate autonomously following its period under Xbox Game Studios’ ownership.

Sources