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Compulsion Games seeks work and partners after Xbox split

Published 14 July 2026

Just over a week after becoming an independent studio, Compulsion Games is actively seeking new work opportunities and partnerships, marking a pivotal moment for the Montreal-based developer following its separation from Xbox. The studio, known for titles like Contrast, We Happy Few, and the award-winning South of Midnight, announced its search for collaborative projects in a post on LinkedIn, signaling its immediate focus on securing financial stability in a challenging market.

The move comes as part of a broader restructuring at Xbox, referred to by some as the "Xbox Reset," which involved layoffs and the divestment of several studios. Compulsion Games and Double Fine Productions were among those returned to independent status, retaining the rights to their intellectual properties. This differs from other studios, such as Undead Labs and Ninja Theory, which were sold to new publishers. While Xbox provided both Compulsion and Double Fine with transitional funding, the high costs of game development and the loss of a corporate safety net have placed significant pressure on the studios to find a sustainable path forward.

In its public statement, Compulsion Games expressed...

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