Compulsion Games officially separates from Xbox – “The team told me we would rather eat rocks and drink gasoline than be split up”

Compulsion Games has officially become an independent studio following a management buyout led by CEO Guillaume Provost, regaining ownership of its intellectual property and publishing rights from Microsoft. The Canadian developer, known for titles like South of Midnight and We Happy Few, was one of five Xbox studios divested by Microsoft as part of broader company restructuring that included a 20% workforce reduction across Xbox.

Provost emphasized that keeping the team intact was the primary motivation for the acquisition. “I did this deal for the team first and foremost,” Provost told GamesBeat. “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.” Despite this commitment, some employees departed during the uncertainty period when Provost had warned of a potential studio closure before Microsoft announced the divestment.

The separation carries significant practical implications. Revenue from South of Midnight—one of 2025’s acclaimed titles—now flows directly to Compulsion Games rather than Xbox. The studio has regained full control over all its original intellectual properties, providing greater creative and financial autonomy going forward.

Moving forward, Compulsion Games is developing a new game while operating independently. Provost indicated the studio intends to “take things slow,” suggesting a deliberate, measured approach to future projects following the tumultuous transition period. The buyout marks a notable outcome in Microsoft’s recent studio portfolio restructuring, allowing Compulsion to pursue its own creative vision.

Compulsion Games officially separates from Xbox – “The team told me we would rather eat rocks and drink gasoline than be split up”

Sources