Compulsion Games completes management buyout, regains full independence from Xbox Game Studios

Compulsion Games, the Montreal-based studio behind titles like South of Midnight and We Happy Few, has completed a management buyout to become fully independent from Xbox Game Studios. The deal, finalized in August 2026, allows the studio to retain ownership of its intellectual property and publishing rights.

CEO Guillaume Provost confirmed the separation in an interview, stating, "We've completed our separation process to become independent again." He emphasized that the primary motivation was preserving the team. "I did this deal for the team first and foremost. I asked the team, 'Do you want to stay together?' The team told me we would rather eat rocks and drink gasoline than be split up," Provost said.

The buyout follows a period of uncertainty after Xbox announced a major restructuring in July, which included layoffs across several studios. Provost noted that the outcome was favorable compared to the alternative. "Everything is relative. Compared to all of us losing our jobs on July 6, this is a pretty good deal. I would say the exit was gracious on Microsoft's part," he said.

As part of the agreement, Compulsion Games has regained full ownership of its three main titles:...