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studio-business · compulsion-games · xbox · south-of-midnight · co-development

Compulsion Games seeks co-development work after Xbox spin-out

The South of Midnight studio says it is open to collaborating with and supporting other developers now that it is independent again.

South of Midnight key art

Compulsion Games, the Montreal studio behind South of Midnight, has said it is open to collaborating with and supporting other developers following its spin-out from Xbox, according to an open letter reported by GamesIndustry.biz and Rock Paper Shotgun in July.

With Compulsion Games returning to its roots as an independent developer, we are expanding opportunities to collaborate with studios across the games and entertainment industry.
Compulsion Games

In the letter, the studio said it brings artistry, technical expertise and a collaborative approach to every project, and invited partners to draw on the team behind South of Midnight. It cited that game's BAFTA Award, a Peabody Award, seven Canadian Game Awards, and placements on multiple best-of-2025 lists.

What the split leaves behind

GamesIndustry.biz reported that Compulsion Games was spun out of Xbox alongside Double Fine Productions following significant cuts at the platform holder. Xbox acquired Compulsion Games and Ninja Theory in 2018; Ninja Theory was also affected by the changes and is seeking new ownership and funding, as is Undead Labs.

As part of the deal that made it independent, Compulsion Games retains the rights to Contrast, We Happy Few and South of Midnight. The studio said it was grateful for its years with Xbox and for the support the platform holder provided its team.

Rock Paper Shotgun framed the move as a search for co-development or support work on other studios' projects, noting that neither Compulsion nor Double Fine moved directly to new owners in the way Undead Labs and Ninja Theory are positioned to, and that both had released games relatively recently before being cut loose. On that reading, securing outside work would help fund the team while its next project is spun up.

Compulsion Games said its immediate priority is supporting its team through the transition, and that it intends to continue making games that tell what it called important stories.

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