Updated
Updated · MobileSyrup · Aug 20
Compulsion Games Regains 3 Game Rights in Xbox Split After 3,200 Layoffs
Updated
Updated · MobileSyrup · Aug 20

Compulsion Games Regains 3 Game Rights in Xbox Split After 3,200 Layoffs

3 articles · Updated · MobileSyrup · Aug 20

Summary

  • Compulsion confirmed it is independent from Xbox again, and CEO Guillaume Provost said the studio kept rights to South of Midnight, Contrast and We Happy Few.
  • Those rights were transferred during a transition period, but Provost said game purchases now directly support the Montreal studio rather than Microsoft.
  • The separation helped Compulsion avoid a potential shutdown during Xbox's broader reset, which earlier included 3,200 layoffs and divestitures across multiple studios.
  • Provost said some staff left when closure risk emerged, though most management stayed and part of the team will keep developing a new project started under Xbox.
  • The buyout gives Compulsion control after South of Midnight won a Peabody and swept the Canadian Game Awards, but it now must secure funding in a battered games industry.

Insights

Why did Microsoft let Compulsion Games reclaim its studio, staff, and IP instead of keeping the rights in-house?
How did Compulsion Games win back We Happy Few, Contrast, and South of Midnight after escaping Microsoft’s studio cuts?
Can a newly independent Compulsion Games stay financially stable while making the strange narrative-driven games Microsoft once owned?