The studio is independent again, but now, without Microsoft, they need to figure something out—and quickly.
Just a week after regaining its independence amid Xbox’s latest round of massive layoffs, Compulsion Games, the developer of South of Midnight, is looking for new job opportunities. In a LinkedIn post, Compulsion announced that it is expanding collaboration opportunities with studios in the gaming and entertainment industries.
“With Compulsion Games returning to its roots as an independent developer, we are expanding opportunities to collaborate with studios across the gaming and entertainment industries. We invite partners to leverage the talent and creativity of the award-winning team behind South of Midnight, a game honored with a BAFTA Award, a Peabody Award, and seven Canadian Game Awards. It was also recognized on multiple ‘Best Games of 2025’ lists. With our extensive experience in creating acclaimed original IP, we bring artistry, technical expertise, and a collaborative approach to every project. We are excited to support the development of memorable experiences that engage and entertain players around the world,” wrote Compulsion Games.
This is disheartening. South of Midnight did indeed win all of those awards and more, including the Games for Impact Award at The Game Awards 2025, which was left out of the statement. However, the game didn’t sell exceptionally well, and the critics’ praise wasn’t enough to secure Compulsion’s future under Xbox’s ownership, let alone guarantee a sequel. Microsoft, which acquired Compulsion in 2018, received some credit for allowing the studio to remain independent rather than shutting it down. Allowing Compulsion to operate as an independent studio—especially in the suffocating environment in which the gaming industry finds itself—may merely have postponed the inevitable “game over” and gives Xbox a way to avoid accountability should that happen.
Compulsion began as a support studio. According to their website, they began operating in 2009 as a home office that provided services to other gaming companies, including THQ and Atari. Therefore, this isn’t entirely uncharted territory for them. However, the environment was very different back then: massive layoffs and studio closures in recent years have left countless developers out of work in a shrinking industry.
Source: PCGamer, LinkedIn, Compulsion Games
