xbox

Compulsion Games completes management buyout and regains IP from Microsoft

Compulsion Games has left Microsoft after a management-led buyout in which the studio’s management acquired the company and staff and Microsoft transferred Compulsion’s intellectual property back to the studio. Steam now lists Compulsion as the developer and publisher of South of Midnight, so Steam sales revenue for that game will go to Compulsion rather than Xbox. Some developers left after warnings the studio faced closure, but most senior staff stayed and part of the team is already working on an unannounced game begun before the split. Compulsion is meeting potential partners to replace Microsoft’s financial backing.

• Management team bought Compulsion and its staff; Microsoft returned the studio’s IP.
• Steam listing for South of Midnight shows Compulsion as developer/publisher, directing sales revenue to Compulsion instead of Xbox.
• Some developers departed after being warned the company risked closure, while most senior staff remained.
• A portion of the team is working on an unannounced game that started before the split, and the studio is seeking new funding partners.