It’s an emotional day for many developers at Xbox, especially in the wake of layoffs that have left 1,600 without jobs (with another 1,600 to follow in the next 12 months). However, the same could be said for Compulsion Games, especially as rumors of its closure have circulated for several weeks. Several members of the studio even reportedly left before the big announcement.
Nevertheless, its future is secure, and it goes independent once more. In a new Twitter post, it confirmed that it retains the rights to South of Midnight, We Happy Few and the lesser-known Contrast. “We’re grateful for the years we spent with Xbox, for the support they provided our team, and for the opportunity to bring these games to players around the world.”
Compulsion is currently focused on supporting the team “through this transition period.” While it’s probably too early to talk about what’s next, the studio remains committed to “unique games that tell important stories, all with the goal of touching the hearts and minds of players.”
As for why the studio reached this point with Xbox, reports indicated that South of Midnight failed to meet expectations (both in sales and Game Pass engagement). Considering it’s the only game from Compulsion since its acquisition by Xbox in 2018 – with rumors dating its development as far back as 2021 – it’s not surprising that it would go its own way.
It joins the likes of Double Fine Productions, which also returned to independence. On the other hand, Ninja Theory and Undead Labs are under new ownership, allegedly slated to be revealed later this year. Despite State of Decay 3 receiving Xbox funding, the studio’s new owner is reportedly not obligated to bring it to Game Pass on day one.
