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Gamerant
Xbox Studio Officially Independent Again
Compulsion Games has completed its management buyout from Microsoft, regaining independence after eight years as part of Xbox. Founded in 2009, the studio saw its most significant project under Microsoft with the release of South of Midnight. Despite disappointing sales, the studio maintains its original intellectual properties, allowing for greater creative freedom while facing the challenge of sustaining itself without Microsoft's support. As they pivot to self-publishing, Compulsion explores new partnerships and is committed to continuing its unique storytelling tradition.
MonitorConfidence: HighMid term horizon
Published 23 Aug 2026, 20:00 UTC3 min read
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Summary
TL;DR
- Compulsion Games has officially become independent after a management buyout from Microsoft.
- The studio regained ownership of its original IP, including Contrast and We Happy Few.
- The buyout allows Compulsion greater creative freedom and responsibility for its sustained success.
- Microsoft's restructuring plans led to significant job cuts but Compulsion's team remains intact.
- Future collaborations and sustainable funding avenues are a priority for the newly independent studio.
Interesting facts
- Compulsion was potentially facing closure before the buyout option emerged.
- The studio's most recent game, South of Midnight, underperformed against Microsoft's expectations.