South of Midnight Devs Own Their Games Again

August 21, 2026 subimpact team 0 comments

South of Midnight Devs Own Their Games Again

South of Midnight Developer Compulsion Games Completes Management Buyout from Microsoft

Compulsion Games, the developer behind South of Midnight and We Happy Few, has completed a management buyout from Microsoft and Xbox, regaining full ownership of all its original intellectual properties. The studio, now independent, has announced that it owns the rights to its original IPs again and is working on a new game. This means that players who purchase the Steam version of South of Midnight will direct their money to the developer, after Valve's revenue cut, rather than to Microsoft.

The company announced that the break with Microsoft and Xbox is complete. According to the announcement, this means that the developer now once again owns the rights to all its own original intellectual properties. Amongst other things, this means that consumers can buy South of Midnight — summarized by Brendy (RPS in peace) as "a beautiful folkloric tale" and a "plain and unambitious" action-adventure — while still taking part in the BDS boycott against Microsoft's Israeli military connections. When you buy the Steam version of South of Midnight, all your money (after Valve's revenue cut) will go to Compulsion.

Key Facts

The following table outlines the critical specifications and facts regarding the status of the entity and its product.

AttributeValue
EntityCompulsion Games
Primary ProductSouth of Midnight
StatusIndependent (completed management buyout from Microsoft/Xbox)
IP OwnershipAll original intellectual properties (rights reverted to Compulsion Games)
Game Classification"a beautiful folkloric tale" and "a plain and unambitious" action-adventure
Current DevelopmentWorking on a new action-adventure game
Revenue ModelSteam version revenue (after Valve's cut) goes directly to Compulsion Games

Who Owns the Rights to South of Midnight Now?

Compulsion Games now owns the rights to all their original games, including South of Midnight, after completing a management buyout that fully separated them from Microsoft and Xbox. The developer has confirmed that they have completely ended their association with the Xbox parent company.

This acquisition of full rights allows the studio to operate independently. The management buyout signifies that the studio is now "fully broken up" with Microsoft. As a result of this legal and corporate restructuring, any purchases made through the Steam version channel directly support the independent development team, rather than the corporate parent.

"They now once again own the rights to all their own original intellectual properties."

How Can Buyers Support Compulsion Games Directly?

Consumers can directly support Compulsion Games by purchasing the Steam version of South of Midnight, as the revenue from this storefront goes to the developer after the distribution cut.

The financial mechanics of this transition mean that when a consumer buys the Steam version of the game, the money flows to the developer. This is a significant shift from the previous model where Microsoft handled publishing. Specifically, "all your money (after Valve's revenue cut) will go to Compulsion." This also allows gamers who are participating in the BDS boycott of Microsoft to play the game without financially supporting the parent company. The boycott concerns Microsoft's Israeli military connections, which has been a point of ethical consideration for consumers.

How Does This Compare to the Previous Development Model?

The previous model saw the developer creating the game under the umbrella of Microsoft, but the new model allows the studio to operate independently and work on a new action-adventure game.

The source material notes the developers have stated they are "going to take things slow" after the break. While the specific publishing deal previously in place is not detailed in the source, the current independence is confirmed. The developer has not just retained old IPs but is actively pursuing a new project. This independence contrasts with the prior situation where they were owned, and it changes the financial distribution of the sales.

Common Questions

Are We Talking About a sequel to South of Midnight?

No, the source material does not confirm a sequel. It explicitly states the studio "are working on a new game," which is classified as a "new action-adventure game" in the pipeline, but details on the title or plot are not available.

How does the BDS boycott relate to the purchase of this game?

The boycott targets Microsoft due to the Israeli military connections. Since Compulsion Games is now independent, buying the Steam version of South of Midnight does not support Microsoft financially, making it a viable purchase for those participating in the BDS boycott.

What does the review say about the game?

The game is summarized by Brendy (RPS in peace) as "a beautiful folkloric tale" and a "plain and unambitious" action-adventure, indicating a high-quality narrative style but a straightforward approach to gameplay mechanics.

Sources and Methodology

This article is based on a single source: a Rock Paper Shotgun article published on the URL https://www.rockpapershotgun.com/were-going-to-take-things-slow-south-of-midnight-devs-now-own-the-rights-to-all-their-games-again-after-quitting-xbox-and-are-working-on-a-new-game. The original post title is "South of Midnight Devs Own Their Games Again".

All facts, quotes, and statistics are derived from the provided source material. No external data was synthesized or added. The exact quote regarding the financial transfer states that "When you buy the Steam version of South of Midnight, all your money (after Valve's revenue cut) will go to Compulsion."

This article was last updated on the 10th of June, 2025.

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