Compulsion Games becomes publisher of South of Midnight on Steam, suggesting departure from Xbox amid major restructuring is now complete

Compulsion Games, formerly an Xbox studio, has now taken on the role of publisher for its own game, South of Midnight, on the Steam platform. This marks a complete separation from Xbox, as the studio was one of two that gained independence from the company's recent restructuring. The other studio that achieved independence was indie darling Double Fine.

Other affected studios include Ninja Theory, Undead Labs, and Arkane Lyon, whose future remains uncertain under new ownership. During the transition, Compulsion Games gained ownership of its franchises, which include Contrast, We Happy Few, and South of Midnight. The studio expressed gratitude for their time with Xbox, acknowledging the support provided to their team and the opportunity to bring their games to players worldwide.

While South of Midnight is now fully credited to Compulsion Games on Steam, it is still listed as published by Microsoft/Xbox on PlayStation and Xbox stores. This discrepancy could be due to a delayed reaction or may indicate something else, but further clarification from Compulsion Games is still pending. The restructuring has affected various areas of the business, including teams working on core franchises like Bethesda Game Studios' The Elder Scrolls 6.

Morale has reportedly suffered, with many employees awaiting news about potential layoffs that could occur between now and next summer. South of Midnight, released in spring 2025, received praise for its visual presentation and unique musical gameplay but faced criticism for its shallow gameplay, earning a three-star rating from reviewer Chris.