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.

With the ink barely dry on its split from Microsoft, Compulsion is broadcasting its availability as a co-development or support studio. The move signals a pragmatic pivot for the team as it works to secure its financial footing outside the safety net of a major publisher. The studio appears eager to leverage its proven development experience, reaching out broadly to potential partners who could benefit from its expertise while Compulsion works toward establishing itself as a fully independent outfit.

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