Compulsion Games completes management buyout; IP returned and studio independent

GG Brief Editorial Desk · AI-assisted, source attributed

Compulsion Games has completed a management buyout and is independent again, with Microsoft transferring the studio’s original intellectual property back to Compulsion. Studio management acquired the company and its staff as part of the deal. Purchases of South of Midnight made outside the Xbox digital storefront will no longer send revenue to Microsoft, increasing Compulsion’s share of sales. The exit follows Xbox layoffs and closure concerns and lets Compulsion pursue other partnerships freely.

• Management buyout finished and Compulsion is independent; Microsoft transferred the studio’s original IP back to Compulsion.
• Studio management acquired the company and its staff in the buyout.
• Purchases of South of Midnight outside the Xbox digital storefront will not send revenue to Microsoft, meaning Compulsion keeps a larger share of sales.
• South of Midnight was a 2025 critical highlight (83% PC Gamer review); Compulsion also developed We Happy Few and 2013’s Contrast, and the buyout follows Xbox layoffs and closure concerns that prompted the studio to leave Microsoft.