Montreal studio completes buyout, reclaims South of Midnight and its catalog after Xbox’s 3,200-job reset.
The team at Compulsion Games faced shutdown last month. CEO Guillaume Provost asked them one question: stay together or scatter?
Their reply was raw. “We would rather eat rocks and drink gasoline than be split up.”
Provost struck the deal for them. Management bought the studio and staff from Microsoft. Compulsion is independent again.
Xbox announced the split on July 6 as part of its biggest restructure. It cut 3,200 jobs and let five studios go. Compulsion and Double Fine returned to their founders with their games intact.
Provost called the exit gracious. “Compared to all of us losing our jobs on July 6, this is a pretty good deal.”
The Games Come Home
Compulsion now owns Contrast (2013), We Happy Few (2018) and South of Midnight (2025). Publishing rights are transferring back, starting with Steam. Buy a copy there and the money goes straight to the studio, not Xbox. Console stores will follow after a short transition.
South of Midnight already lists Compulsion as publisher on Steam. The change landed August 11, the day the buyout closed.
Some staff left after Provost warned of possible closure. Most senior leaders stayed. He will not give a headcount. Part of the team is already on an unannounced game that started under Xbox.
What’s Next for the Weird Worlds Crew
Provost is meeting partners and exploring funding. He wants the studio lean and self-sustaining. “We’re going to take things slow,” he said. “I think we’ll have really solid bones.”
He started Compulsion in 2009 during a recession. He sold it to Xbox in 2018. Now the cycle repeats. “Starting ventures when times are tough means the companies start to build the right bones.”
The studio posted the news itself: every game you buy now funds the next project. Fans on X cheered the independence. A few wondered how long the runway lasts without Xbox money.
Thanks to @deantak for sitting down with Guillaume Provost to talk about Compulsion’s independence.
— Compulsion Games (@CompulsionGames) August 20, 2026
👉Every Compulsion game you buy now directly supports us and helps fund our next project.https://t.co/Y4uJ0ReqHx
Compulsion built a reputation for strange, handcrafted stories. That identity is back in its own hands.
AI Disclosure: This article was created with the assistance of artificial intelligence tools and was reviewed and edited by the Glowls News editorial team before publication.