Former Xbox Studio Compulsion Games Says It's Open to Collaborations

Montreal-based developer Compulsion Games has announced that it is actively seeking collaborations with other studios and publishers after negotiating its independence from Xbox Game Studios. The developer, known for titles like South of Midnight and We Happy Few, is now positioning itself to work as a co-developer or support studio on projects across the games and entertainment industry.

Navigating the Xbox Departures

The transition back to independence comes during a turbulent time for Xbox's first-party developers. According to a report by IGN, Compulsion Games managed to avoid closure during a recent wave of mass layoffs at Xbox Game Studios. Instead of shutting down, the team successfully negotiated its departure to regain its independent status.

These layoffs have affected several other prominent studios under the Xbox umbrella, including Double Fine, Undead Labs, Ninja Theory, and Arkane. Reports indicate that these moves align with a broader strategic shift by the first-party publisher to focus its resources on its largest and most established franchises.

A Portfolio of Distinctive Projects

Before its acquisition by Xbox in 2018, Compulsion Games had already established a distinct creative identity. The studio first gained attention with the 2013 puzzle-platformer Contrast, followed by the dystopian survival-adventure game We Happy Few in 2018.

During its time with Xbox, the studio developed the action-adventure game South of Midnight, which was released in 2025. The title was well-received by critics, earning an 8/10 rating from IGN and a "Generally Favorable" aggregate score on Metacritic.

The Road Ahead for Compulsion

With its newly reclaimed independence, Compulsion Games is looking to utilize its experience and established team to assist other creators. In a statement published on LinkedIn, the studio expressed its readiness to partner with other companies in the industry.

"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," the studio wrote. "We invite partners to leverage the talent and creativity of the award-winning team behind South of Midnight... We are excited to support the development of memorable experiences that engage and entertain players around the world."

By offering its services as a co-developer or support studio, Compulsion Games joins a growing ecosystem of independent developers who balance their own original IP development with assisting other teams on major releases.

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• IGN Games Hero image: https://assets-prd.ignimgs.com/2026/07/13/assets-2025-04-1744811063-southofmidnight-preview-screenshot-24-hazel-bottetree-1783969538698.png