South of Midnight

76 / 100PlatformAdventureApril 8, 2025

South of Midnight is a new action-adventure from Compulsion Games. Explore the mythos and confront mysterious creatures of the Deep South in this modern folktale while learning to weave an ancient power to surmount obstacles and face the pain haunting your hometown.

Xbox Series X|SNintendo Switch 2PC (Microsoft Windows)PlayStation 5

Compulsion GamesXboxSouth of Midnight

South of Midnight Studio Compulsion Games Completes Buyout from Xbox

Compulsion Games, the studio behind the critically acclaimed South of Midnight, has officially completed its buyout from Xbox and is now a fully independent developer. The Montreal-based studio confirmed the news on August 20, 2026, marking the end of its time as a Microsoft first-party studio and the beginning of a new chapter in its history. Crucially, Compulsion retained ownership of all its intellectual property as part of the deal, meaning the South of Midnight IP stays with the team that created it.

5d ago

South of MidnightCompulsion GamesXbox

South of Midnight Goes Independent as Compulsion Games Self-Publishes on Steam

Compulsion Games has taken full control of South of Midnight's publishing on Steam, with the studio now listed as the game's publisher on the platform. The change signals that the developer's departure from Xbox following Microsoft's major restructuring efforts is effectively complete. Previously, Microsoft or one of its publishing labels would have held that role, making this update a notable shift in the game's commercial identity.

Aug 15, 2026

Compulsion GamesXboxIndependent Studios

Compulsion Games Goes Independent, Opens Doors to Collaboration Partners

Just days after parting ways with Microsoft as part of Xbox's sweeping mass layoffs in July 2026, Montreal-based Compulsion Games has wasted no time facing the realities of independence. The studio, best known for developing South of Midnight and We Happy Few, announced it is actively seeking collaboration opportunities with studios and companies across the games and entertainment industry. Rather than shutting its doors, Compulsion successfully negotiated a buyback of its independence from Xbox Game Studios, keeping the team intact and positioning itself for a new chapter.

Jul 14, 2026

XboxStudio ClosuresIndustry News

Xbox Spins Off Major Studios: Double Fine, Arkane, Undead Labs & More Go Independent

In a seismic shake-up of the gaming industry, Microsoft has announced it is parting ways with several of its most storied Xbox Game Studios developers — including Double Fine Productions, Arkane Studios, Undead Labs, Compulsion Games, and Ninja Theory — as part of a sweeping business "reset" that has resulted in thousands of layoffs across the gaming division. Xbox Gaming CEO Phil Spencer confirmed the restructuring, which marks one of the most dramatic consolidations in Microsoft's gaming history and sends beloved studios out on their own.

Jul 7, 2026

XboxLayoffsStudio Closures

Xbox Layoffs Loom: Undead Labs at Risk as Devs Demand Worker Protections

Microsoft's Xbox gaming division is bracing for what could be a wave of massive layoffs this summer, with multiple first-party studios reportedly in the crosshairs. According to reports, Undead Labs — the Seattle-based developer behind the State of Decay franchise — is at risk of closure, joining a growing list of studios said to be facing the axe that includes Double Fine, Compulsion Games, and Ninja Theory. The timing is particularly striking for Undead Labs, as the news comes just weeks after State of Decay 3 was revealed for PlayStation 5, raising serious questions about the future of the project should the studio be shuttered or sold.

Jun 30, 2026

XboxIndustry LayoffsCompulsion Games

Xbox Braces for Major Layoffs as Compulsion Games Exodus Begins

The Xbox gaming division is once again at the center of industry-wide anxiety as reports of sweeping layoffs continue to gain momentum. At least a dozen staff members at Compulsion Games — the award-winning studio behind the recently released South of Midnight — have publicly announced their departures this week, signaling that Microsoft's anticipated workforce "reset" may already be underway. The wave of exits at the Canadian studio marks a troubling postscript to what was widely regarded as one of Xbox's most creatively ambitious recent releases.

Jun 25, 2026