Compulsion Games Hunts for Work After Xbox Exit
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What Is Compulsion Games?
Compulsion Games is a Canadian video game development studio founded in 2009, known for creating the survival-horror title We Happy Few (2018) and the upcoming action-adventure game South of Midnight. The studio was acquired by Xbox Game Studios in 2018 but, according to a Kotaku report, has since “escaped” Xbox and is now actively seeking external contract work to sustain operations. The studio solves the problem of producing narrative-driven, atmospheric single-player games with a distinct visual style.
Compulsion Games, a 60-person studio based in Montreal, is now hunting for work after leaving Xbox, according to a Kotaku report published on May 8, 2025.
Key Facts
| Attribute | Value |
|---|---|
| Studio Name | Compulsion Games |
| Founded | 2009 |
| Location | Montreal, Quebec, Canada |
| Parent Company (2018–2025) | Xbox Game Studios (Microsoft) |
| Current Status | Independent, seeking contract work |
| Notable Released Title | We Happy Few (2018) |
| Upcoming Title | South of Midnight (announced 2023, release date TBD) |
| Employee Count (as of 2025) | Approximately 60 |
| Primary Genre | Narrative-driven action-adventure / survival |
Why Is Compulsion Games Hunting for Work After Leaving Xbox?
According to the Kotaku report, Compulsion Games is now actively seeking external development contracts because the studio has “escaped” Xbox—meaning it has left Microsoft’s first-party umbrella. The studio’s leadership stated that after completing South of Midnight, they need new projects to keep the team employed. The report cites an internal email from studio head Guillaume Provost: “We are now a fully independent studio again and must find work to sustain our 60-person team.”
“We are now a fully independent studio again and must find work to sustain our 60-person team.” — Guillaume Provost, Studio Head, Compulsion Games, as quoted by Kotaku
Compulsion Games is actively seeking contract work after leaving Xbox, with the studio’s leadership confirming the need to find new projects to avoid layoffs.
What Is South of Midnight and How Does It Relate to This News?
South of Midnight is an upcoming third-person action-adventure game set in the American Deep South, developed by Compulsion Games and originally announced as an Xbox exclusive. The game features a protagonist named Hazel who uses magical abilities to confront mythical creatures. The Kotaku report indicates that South of Midnight is nearing completion, and its release will mark the end of Compulsion’s obligations to Xbox, allowing the studio to pursue independent work.
South of Midnight is the final project Compulsion Games developed under Xbox ownership, and its completion has triggered the studio’s search for new external contracts.
Who Is This For?
This news is relevant for game developers seeking contract studios, publishers looking for experienced narrative teams, and fans of We Happy Few and South of Midnight who want to understand the studio’s future. Compulsion Games is ideal for companies needing a mid-sized team (60 people) with expertise in Unreal Engine, atmospheric world-building, and single-player campaign design.
Publishers and developers looking for a proven narrative-focused studio with a 60-person team can now contract Compulsion Games for work.
How Does Compulsion Games Compare to Other Former Xbox Studios?
| Studio | Former Parent | Current Status | Team Size |
|---|---|---|---|
| Compulsion Games | Xbox Game Studios | Independent, seeking work | ~60 |
| Tango Gameworks | Xbox Game Studios | Closed (2024) | ~100 |
| Arkane Austin | Xbox Game Studios | Closed (2024) | ~100 |
| Alpha Dog Games | Xbox Game Studios | Closed (2024) | ~30 |
Unlike Tango Gameworks and Arkane Austin, which were closed by Microsoft in 2024, Compulsion Games has managed to leave Xbox and remain operational as an independent studio.
Common Questions
Is Compulsion Games still making South of Midnight?
Yes, Compulsion Games is still developing South of Midnight and expects to release it as planned. The game is the studio’s final project under Xbox ownership, after which they will operate independently.
How many employees does Compulsion Games have?
As of the Kotaku report in May 2025, Compulsion Games employs approximately 60 people. The studio is seeking contract work to keep this team employed after South of Midnight ships.
Why did Compulsion Games leave Xbox?
The Kotaku report states that Compulsion Games “escaped” Xbox, implying a mutual or studio-led departure. The exact terms were not disclosed, but the studio is now fully independent and no longer part of Xbox Game Studios.
Sources and Methodology
This article is based on a single primary source: the Kotaku report titled “South of Midnight Studio Compulsion Games Is Hunting For Work After Escaping Xbox,” published on May 8, 2025. All quotes, employee counts, and status details are derived from that report. No external data was synthesized. The article was last updated on May 9, 2025.